Eaton Vance Tax Managed Buy Write Opport (NYSE: ETV) and Solar Capital (NASDAQ:SLRC) are both small-cap financials companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.
This table compares Eaton Vance Tax Managed Buy Write Opport and Solar Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Eaton Vance Tax Managed Buy Write Opport||N/A||N/A||N/A|
This is a summary of recent recommendations for Eaton Vance Tax Managed Buy Write Opport and Solar Capital, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Eaton Vance Tax Managed Buy Write Opport||0||0||0||0||N/A|
Solar Capital has a consensus price target of $23.67, indicating a potential upside of 14.33%. Given Solar Capital’s higher possible upside, analysts plainly believe Solar Capital is more favorable than Eaton Vance Tax Managed Buy Write Opport.
Volatility and Risk
Eaton Vance Tax Managed Buy Write Opport has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Solar Capital has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500.
Valuation and Earnings
This table compares Eaton Vance Tax Managed Buy Write Opport and Solar Capital’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Eaton Vance Tax Managed Buy Write Opport||N/A||N/A||N/A||N/A||N/A|
|Solar Capital||$151.84 million||5.76||$106.81 million||$1.68||12.32|
Solar Capital has higher revenue and earnings than Eaton Vance Tax Managed Buy Write Opport.
Institutional & Insider Ownership
60.9% of Solar Capital shares are owned by institutional investors. 5.9% of Solar Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Solar Capital pays an annual dividend of $1.60 per share and has a dividend yield of 7.7%. Eaton Vance Tax Managed Buy Write Opport does not pay a dividend. Solar Capital pays out 95.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Solar Capital beats Eaton Vance Tax Managed Buy Write Opport on 9 of the 11 factors compared between the two stocks.
Eaton Vance Tax Managed Buy Write Opport Company Profile
Eaton Vance Tax-Managed Buy-Write Opportunities Fund is a United States-based diversified, closed-end management investment company. The Fund’s investment objective is to provide income and gains, with a secondary objective of capital appreciation. It invests in a portfolio of common stocks and writes call options on one or more United States indices on a substantial portion of the value of its common stock portfolio to generate earnings from the option. It evaluates returns on an after tax basis and seeks to minimize and defer federal income taxes incurred by shareholders in connection with their investment in the Fund. Its portfolio of investments include hotels, restaurants and leisure; life sciences tools and services; software; technology hardware, storage and peripherals; technology hardware, storage and peripherals, and personal products, among others. Its investment advisor is Eaton Vance Management and its sub-advisor is Parametric Portfolio Associates LLC.
Solar Capital Company Profile
Solar Capital Ltd. is a closed-end, externally managed, non-diversified management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. It invests in privately held the United States middle market companies. It invests in leveraged middle market companies in the form of senior secured loans, unitranche loans, mezzanine loans and equity securities. It may also invest in public companies that are thinly traded. Its business is focused primarily on the direct origination of investments through portfolio companies or their financial sponsors. Its investments generally range between $5 million and $100 million each. In addition, the Company may invest a portion of its portfolio in other types of investments, which it refers to as opportunistic investments. The Company’s investment activities are managed by Solar Capital Partners, LLC (Solar Capital Partners or the Investment Advisor).
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