Reviewing PIMCO Strategic Income Fund (NYSE:RCS) and SURO Capital (NASDAQ:SSSS)

PIMCO Strategic Income Fund (NYSE:RCS) and SURO Capital (NASDAQ:SSSS) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Insider & Institutional Ownership

13.5% of PIMCO Strategic Income Fund shares are owned by institutional investors. Comparatively, 12.9% of SURO Capital shares are owned by institutional investors. 8.3% of SURO Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares PIMCO Strategic Income Fund and SURO Capital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PIMCO Strategic Income Fund	$35.22 million	6.90	N/A	N/A	N/A
SURO Capital	$218.95 million	1.52	$48.81 million	$6.98	1.83

SURO Capital has higher revenue and earnings than PIMCO Strategic Income Fund.

Profitability

This table compares PIMCO Strategic Income Fund and SURO Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PIMCO Strategic Income Fund	N/A	N/A	N/A
SURO Capital	10,695.73%	-6.61%	-5.13%

Volatility and Risk

PIMCO Strategic Income Fund has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, SURO Capital has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Dividends

PIMCO Strategic Income Fund pays an annual dividend of $0.48 per share and has a dividend yield of 9.3%. SURO Capital pays an annual dividend of $0.50 per share and has a dividend yield of 3.9%. SURO Capital pays out 7.2% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent recommendations for PIMCO Strategic Income Fund and SURO Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PIMCO Strategic Income Fund	0	0	0	0	0.00
SURO Capital	0	0	5	1	3.17

SURO Capital has a consensus price target of $15.00, indicating a potential upside of 17.19%. Given SURO Capital’s stronger consensus rating and higher probable upside, analysts plainly believe SURO Capital is more favorable than PIMCO Strategic Income Fund.

Summary

SURO Capital beats PIMCO Strategic Income Fund on 8 of the 14 factors compared between the two stocks.

About PIMCO Strategic Income Fund

PIMCO Strategic Global Government Fund, Inc. is a closed-ended fixed income mutual fund launched and managed by Allianz Global Investors Fund Management LLC. The fund is co-managed by Pacific Investment Management Company LLC. It invests in fixed income markets across the globe. The fund primarily invests in government securities, including bonds issued or guaranteed by the United States or foreign governments, by their agencies, authorities or instrumentalities, or by supranational entities. It employs fundamental analysis with a focus on top down stock picking approach to create its portfolio. PIMCO Strategic Global Government Fund, Inc. was formed on February 24, 1994 and is domiciled in the United States.

About SURO Capital

SuRo Capital Corp. is a business development company. The firm seeks to invest in growth capital, late stage and venture capital-backed private companies. SuRo Capital Corp. was founded in 2010 and is based in San Francisco, California with additional office in New York, New York.