Solar Capital (SLRC) versus BlackRock Enhanced Global Dividend Trust (BOE) Critical Survey

Solar Capital (NASDAQ: SLRC) and BlackRock Enhanced Global Dividend Trust (NYSE:BOE) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Profitability

This table compares Solar Capital and BlackRock Enhanced Global Dividend Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Solar Capital 54.87% 7.30% 3.96%
BlackRock Enhanced Global Dividend Trust N/A N/A N/A

Dividends

Solar Capital pays an annual dividend of $1.60 per share and has a dividend yield of 7.5%. BlackRock Enhanced Global Dividend Trust does not pay a dividend. Solar Capital pays out 85.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of recent ratings for Solar Capital and BlackRock Enhanced Global Dividend Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Solar Capital 0 3 2 0 2.40
BlackRock Enhanced Global Dividend Trust 0 0 0 0 N/A

Solar Capital currently has a consensus price target of $23.10, indicating a potential upside of 8.50%. Given Solar Capital’s higher probable upside, equities research analysts plainly believe Solar Capital is more favorable than BlackRock Enhanced Global Dividend Trust.

Insider & Institutional Ownership

63.0% of Solar Capital shares are owned by institutional investors. 5.9% of Solar Capital shares are owned by 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.

Valuation & Earnings

This table compares Solar Capital and BlackRock Enhanced Global Dividend Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Solar Capital N/A N/A N/A $1.88 11.32
BlackRock Enhanced Global Dividend Trust N/A N/A N/A N/A N/A

Summary

Solar Capital beats BlackRock Enhanced Global Dividend Trust on 8 of the 9 factors compared between the two stocks.

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).

BlackRock Enhanced Global Dividend Trust Company Profile

BlackRock Enhanced Global Dividend Trust (the Trust), formerly BlackRock Global Opportunities Equity Trust, is a diversified, closed-end management investment company. The Trust’s investment objective is to provide current income and current gains, with a secondary objective of long-term capital appreciation. The Trust seeks to achieve its investment objectives by investing primarily in equity securities issued by companies located in countries throughout the world and utilizing an option writing (selling) strategy. The Trust focuses on investing in sectors, including information technology, financials, healthcare, materials, energy and utilities. The Trust invests at least 80% of its assets in equity securities or options on equity securities or indices or sectors of equity securities. The Trust invests amount of its total assets in foreign issuers. BlackRock Advisors, LLC is its investment advisor.

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