Solar Senior Capital (NASDAQ: SUNS) and Full Circle Capital Corp (NASDAQ:FULL) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.
Risk & Volatility
Solar Senior Capital has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Full Circle Capital Corp has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.
Solar Senior Capital pays an annual dividend of $1.41 per share and has a dividend yield of 8.7%. Full Circle Capital Corp does not pay a dividend. Solar Senior Capital pays out 94.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Solar Senior Capital and Full Circle Capital Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Solar Senior Capital||76.07%||7.98%||4.22%|
|Full Circle Capital Corp||-11.16%||-1.78%||-1.24%|
Earnings & Valuation
This table compares Solar Senior Capital and Full Circle Capital Corp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Solar Senior Capital||N/A||N/A||N/A||$1.49||10.93|
|Full Circle Capital Corp||N/A||N/A||N/A||N/A||N/A|
This is a breakdown of recent ratings and recommmendations for Solar Senior Capital and Full Circle Capital Corp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Solar Senior Capital||0||1||2||0||2.67|
|Full Circle Capital Corp||0||0||0||0||N/A|
Solar Senior Capital currently has a consensus price target of $17.17, suggesting a potential upside of 5.45%. Given Solar Senior Capital’s higher possible upside, analysts plainly believe Solar Senior Capital is more favorable than Full Circle Capital Corp.
Institutional & Insider Ownership
32.8% of Solar Senior Capital shares are owned by institutional investors. 5.6% of Solar Senior Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Solar Senior Capital beats Full Circle Capital Corp on 9 of the 10 factors compared between the two stocks.
About Solar Senior Capital
Solar Senior Capital Ltd. is a closed-end, externally managed, non-diversified management investment company. The Company’s investment objective is to seek to maximize current income consistent with the preservation of capital. The Company seeks to achieve its investment objective by directly and indirectly investing in senior loans, including first lien, unitranche, and second lien debt instruments, made to private middle-market companies whose debt is rated below investment grade, which it refers to collectively as senior loans. It may also invest in debt of public companies that are thinly traded or in equity securities. Under normal market conditions, at least 80% of the value of its net assets (including the amount of any borrowings for investment purposes) will be invested in senior loans. It invests in privately held the United States middle-market companies. Its investment activities are managed by Solar Capital Partners, LLC (Solar Capital Partners or the Investment Advisor).
About Full Circle Capital Corp
Full Circle Capital Corporation is a non-diversified closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. The Company invests primarily in senior secured loans and second lien loans, mezzanine loans and equity securities issued by lower middle-market and middle-market companies that operate in a range of industries. In its lending activities, the Company focuses primarily on portfolio companies with both tangible and intangible assets available as collateral and security against its loan to help mitigate its risk of loss, and cash flow to cover debt service. The Company focuses primarily on senior secured loans and stretch senior secured loans (unitranche loans), which combine characteristics of first-lien senior secured loans and second-lien or subordinated loans. The Company’s investment advisor is Full Circle Advisors, LLC (Full Circle Advisors).
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