BlackRock LT Municipal Advantage Trust (BTA) vs. StoneCastle Financial (NASDAQ:BANX) Head to Head Contrast

StoneCastle Financial (NASDAQ: BANX) and BlackRock LT Municipal Advantage Trust (NYSE:BTA) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Earnings and Valuation

This table compares StoneCastle Financial and BlackRock LT Municipal Advantage Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
StoneCastle Financial $17.03 million 8.42 $7.01 million $1.76 12.46
BlackRock LT Municipal Advantage Trust N/A N/A N/A $0.39 30.38

StoneCastle Financial has higher revenue and earnings than BlackRock LT Municipal Advantage Trust. StoneCastle Financial is trading at a lower price-to-earnings ratio than BlackRock LT Municipal Advantage Trust, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

StoneCastle Financial has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500. Comparatively, BlackRock LT Municipal Advantage Trust has a beta of -0.05, suggesting that its stock price is 105% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for StoneCastle Financial and BlackRock LT Municipal Advantage Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
StoneCastle Financial 0 0 4 0 3.00
BlackRock LT Municipal Advantage Trust 2 6 4 0 2.17

StoneCastle Financial presently has a consensus target price of $22.75, indicating a potential upside of 3.74%. BlackRock LT Municipal Advantage Trust has a consensus target price of $331.67, indicating a potential upside of 2,698.87%. Given BlackRock LT Municipal Advantage Trust’s higher possible upside, analysts clearly believe BlackRock LT Municipal Advantage Trust is more favorable than StoneCastle Financial.

Institutional & Insider Ownership

32.4% of StoneCastle Financial shares are owned by institutional investors. 8.0% of StoneCastle Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares StoneCastle Financial and BlackRock LT Municipal Advantage Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
StoneCastle Financial 66.86% N/A N/A
BlackRock LT Municipal Advantage Trust 128.30% 9.69% 5.76%

Dividends

StoneCastle Financial pays an annual dividend of $1.52 per share and has a dividend yield of 6.9%. BlackRock LT Municipal Advantage Trust does not pay a dividend. StoneCastle Financial pays out 86.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

StoneCastle Financial beats BlackRock LT Municipal Advantage Trust on 7 of the 13 factors compared between the two stocks.

About StoneCastle Financial

StoneCastle Financial Corp. is a non-diversified, closed-end management investment company. The Company’s primary investment objective is to provide stockholders with current income, and to a lesser extent capital appreciation. The Company generally invests in the senior debt, subordinated debt, preferred shares and common stock of community banks. The Company’s investment portfolio includes term loans, debt securities, trust preferred securities, preferred shares of credit securitization, preferred securities, convertible preferred stock, common stock, exchange traded fund, limited partnership interest and money market fund. The Company invests in bank issuers of various locations, such as California, Colorado, Florida, Georgia, Illinois, Kansas, Maine, Maryland, New Jersey, New York, Ohio, North Carolina, Oklahoma, South Carolina, Texas and West Virginia.

About BlackRock LT Municipal Advantage Trust

BlackRock Long-Term Municipal Advantage Trust (the Trust) is a non-diversified, closed-end management investment company. The Trust’s investment objective is to provide current income exempt from regular federal income tax. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in municipal obligations and derivative instruments with exposure to such municipal obligations, in each case that are exempt from federal income tax (except that the interest may be subject to the federal alternative minimum tax). The Trust invests primarily in long-term municipal bonds with a maturity of more than 10 years at the time of investment. The Trust’s municipal bond portfolio will have a dollar-weighted average maturity of more than 10 years. The Trust may invest directly in such securities or synthetically through the use of derivatives. BlackRock Advisors, LLC is the investment manager of the Trust.

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