SLR Investment (NASDAQ:SLRC – Get Free Report) and Royce Value Trust (NYSE:RVT – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.
Institutional & Insider Ownership
35.3% of SLR Investment shares are held by institutional investors. Comparatively, 25.6% of Royce Value Trust shares are held by institutional investors. 8.2% of SLR Investment shares are held by insiders. Comparatively, 0.1% of Royce Value Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares SLR Investment and Royce Value Trust’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
SLR Investment | 33.31% | 9.36% | 3.62% |
Royce Value Trust | N/A | N/A | N/A |
Dividends
Valuation & Earnings
This table compares SLR Investment and Royce Value Trust’s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
SLR Investment | $229.31 million | 3.69 | $76.39 million | $1.40 | 11.09 |
Royce Value Trust | N/A | N/A | N/A | N/A | N/A |
SLR Investment has higher revenue and earnings than Royce Value Trust.
Analyst Ratings
This is a breakdown of recent recommendations for SLR Investment and Royce Value Trust, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
SLR Investment | 1 | 3 | 0 | 0 | 1.75 |
Royce Value Trust | 0 | 0 | 0 | 0 | N/A |
SLR Investment currently has a consensus price target of $14.25, suggesting a potential downside of 8.18%. Given SLR Investment’s higher possible upside, equities analysts clearly believe SLR Investment is more favorable than Royce Value Trust.
Risk and Volatility
SLR Investment has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Royce Value Trust has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.
Summary
SLR Investment beats Royce Value Trust on 9 of the 11 factors compared between the two stocks.
About SLR Investment
SLR Investment Corp. is a business development company specializing in secured debt (first lien unitranche and second lien), subordinated (unsecured) debt, minority equity, leveraged buyouts, acquisitions, recapitalizations, general refinancing, growth capital and strategic income-oriented control equity investments in leveraged middle market companies. The fund invests in aerospace and defense; air freight & logistics; asset management; automotive; banking; beverage, food and tobacco; building products; buildings and real estate; broadcasting and entertainment; cargo transport; commercial services and supplies; communications equipment; chemicals, plastics and rubber; containers, packaging and glass; construction & engineering; diversified/conglomerate manufacturing; consumer Finance; distributors; diversified/conglomerate services; diversified financial services; diversified real estate activities; food products; Footwear; Education Services; diversified telecommunications services; electronics; farming and agriculture; finance; grocery; health care equipment and supplies; health care facilities; education and childcare; home and office furnishing, durable consumer products; hotels, motels, inns and gaming; insurance; restaurants, leisure, amusement, and entertainment; leisure equipment tolls and services, media, multiline retail, multi sector holdings; paper and forest products; personal products; professional services, research and consulting services, software; specialty retail; textiles apparel and luxury goods, thrifts and mortgage finance, trading companies and distributors, utilities, and wireless telecommunication services; industrial conglomerates; internet software and services, IT services, machinery; mining, steel, iron, and non-precious metals; oil and gas; personal, food and miscellaneous services; printing and publishing; retail stores; telecommunications; textiles and leather; and utilities. It also invests in life sciences with focus on specialty pharmaceuticals, medical devices, biotech, health Care Providers and services; health Care technology, enabling technologies and tools. The fund primarily invests in United States. The fund's investments generally range between $5 million and $100 million. The fund invests in companies with revenues between $50 million and $1 billion and EBITDA between $15 million and $100 million. It invests in the form of senior secured loans, mezzanine loans, and equity securities. It may also seek investments in thinly traded public companies and also make secondary investments. The fund makes non-control equity investments. It primarily exits within three years of the initial capital commitment.
About Royce Value Trust
Royce Value Trust Inc. is a close ended equity mutual fund launched and managed by Royce & Associates, LLC. It invests in the public equity markets of the United States. The fund spreads its investments across diversified sectors. It invests in value oriented stocks of small cap and micro cap companies. The fund benchmarks the performance of its portfolio against the Russell 2000 Index. Royce Value Trust Inc. was formed on July 1, 1986 and is domiciled in the United States.
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