Contrasting Eaton Vance Tax Managed Buy Write Opport (ETV) & American Capital Senior Floating (ACSF)

Eaton Vance Tax Managed Buy Write Opport (NYSE: ETV) and American Capital Senior Floating (NASDAQ:ACSF) are both small-cap financials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Dividends

American Capital Senior Floating pays an annual dividend of $1.16 per share and has a dividend yield of 10.7%. Eaton Vance Tax Managed Buy Write Opport does not pay a dividend. American Capital Senior Floating pays out 54.7% of its earnings in the form of a dividend.

Profitability

This table compares Eaton Vance Tax Managed Buy Write Opport and American Capital Senior Floating’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eaton Vance Tax Managed Buy Write Opport N/A N/A N/A
American Capital Senior Floating 62.20% 4.68% 2.49%

Earnings & Valuation

This table compares Eaton Vance Tax Managed Buy Write Opport and American Capital Senior Floating’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eaton Vance Tax Managed Buy Write Opport N/A N/A N/A N/A N/A
American Capital Senior Floating $17.57 million 6.15 $30.50 million $2.12 5.09

American Capital Senior Floating has higher revenue and earnings than Eaton Vance Tax Managed Buy Write Opport.

Analyst Ratings

This is a breakdown of current ratings and price targets for Eaton Vance Tax Managed Buy Write Opport and American Capital Senior Floating, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eaton Vance Tax Managed Buy Write Opport 0 0 0 0 N/A
American Capital Senior Floating 0 0 0 0 N/A

Institutional & Insider Ownership

24.6% of American Capital Senior Floating shares are owned by institutional investors. 0.2% of American Capital Senior Floating shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Eaton Vance Tax Managed Buy Write Opport has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, American Capital Senior Floating has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.

Summary

American Capital Senior Floating beats Eaton Vance Tax Managed Buy Write Opport on 8 of the 9 factors compared between the two stocks.

About Eaton Vance Tax Managed Buy Write Opport

Eaton Vance Tax-Managed Buy-Write Opportunities Fund is a United States-based diversified, closed-end management investment company. The Fund’s investment objective is to provide income and gains, with a secondary objective of capital appreciation. It invests in a portfolio of common stocks and writes call options on one or more United States indices on a substantial portion of the value of its common stock portfolio to generate earnings from the option. It evaluates returns on an after tax basis and seeks to minimize and defer federal income taxes incurred by shareholders in connection with their investment in the Fund. Its portfolio of investments include hotels, restaurants and leisure; life sciences tools and services; software; technology hardware, storage and peripherals; technology hardware, storage and peripherals, and personal products, among others. Its investment advisor is Eaton Vance Management and its sub-advisor is Parametric Portfolio Associates LLC.

About American Capital Senior Floating

American Capital Senior Floating, Ltd. is a non-diversified closed-end investment management company. The Company’s investment objective is to provide attractive, risk-adjusted returns over the long term primarily through current income while seeking to preserve its capital. It manages a leveraged portfolio composed primarily of diversified investments in first lien and second lien floating rate loans principally to the United States-based companies (collectively, Senior Floating Rate Loans or SFRLs), which are referred to as leveraged loans. It invests in equity tranches of collateralized loan obligations (CLOs), which are securitized vehicles collateralized primarily by SFRLs, and it may invest in debt tranches of CLOs. In addition, it may selectively invest in loans issued by middle market companies, mezzanine and unitranche loans and high yield bonds. It has over 80% of its assets in Senior Floating Rate Loans. The Company is managed by American Capital ACSF Management, LLC.

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