THL Credit (NASDAQ: TCRD) and Invesco Bond Fund (NYSE:VBF) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.
Risk & Volatility
THL Credit has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Invesco Bond Fund has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for THL Credit and Invesco Bond Fund, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Invesco Bond Fund||0||0||0||0||N/A|
THL Credit currently has a consensus price target of $11.00, indicating a potential upside of 20.35%. Given THL Credit’s higher possible upside, equities research analysts plainly believe THL Credit is more favorable than Invesco Bond Fund.
Valuation and Earnings
This table compares THL Credit and Invesco Bond Fund’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Invesco Bond Fund||N/A||N/A||N/A||N/A||N/A|
THL Credit pays an annual dividend of $1.08 per share and has a dividend yield of 11.8%. Invesco Bond Fund pays an annual dividend of $0.84 per share and has a dividend yield of 4.2%. THL Credit pays out 145.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider & Institutional Ownership
45.6% of THL Credit shares are held by institutional investors. Comparatively, 19.1% of Invesco Bond Fund shares are held by institutional investors. 0.8% of THL Credit shares are held by insiders. Comparatively, 1.0% of Invesco Bond Fund shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares THL Credit and Invesco Bond Fund’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Invesco Bond Fund||N/A||N/A||N/A|
THL Credit beats Invesco Bond Fund on 8 of the 10 factors compared between the two stocks.
THL Credit Company Profile
THL Credit, Inc. is an externally managed, non-diversified closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation, primarily through investments in privately negotiated debt and equity securities of lower middle market companies. The Company is a direct lender to lower middle-market companies and invests primarily in directly originated first lien senior secured loans, including unitranche investments. In certain instances, it also makes second lien secured loans and subordinated, or mezzanine, debt investments, which may include an associated equity component, such as warrants, preferred stock or similar securities, and direct equity investments. Its first lien senior secured loans may be structured as traditional first lien senior secured loans or as unitranche loans. The Company’s investment activities are managed by THL Credit Advisors LLC.
Invesco Bond Fund Company Profile
Invesco Bond Fund is a diversified, closed-end management investment company. The Fund’s investment objective is to seek interest income while conserving capital. The Fund invests primarily in fixed-rate the United States investment-grade corporate bonds with flexibility to integrate approximately 20% of its total assets in non-investment-grade, the United States dollar denominated and non-United States dollar denominated securities of foreign issuers (both developed and emerging markets). The Fund also invests in government securities, asset-backed securities, commercial mortgage-backed securities and residential mortgage-backed securities. The Fund also invests in derivatives and other instruments that have similar economic characteristics to securities, in which it invests. Invesco Advisers, Inc. serves as the investment advisor of the Fund.
Receive News & Ratings for THL Credit Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for THL Credit Inc. and related companies with our FREE daily email newsletter.