Clearbridge Energy MLP Total Return Fund (CTR) and Pennantpark Floating Rate Capital (PFLT) Critical Comparison

Pennantpark Floating Rate Capital (NASDAQ: PFLT) and Clearbridge Energy MLP Total Return Fund (NYSE:CTR) are both small-cap financials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Dividends

Pennantpark Floating Rate Capital pays an annual dividend of $1.14 per share and has a dividend yield of 9.1%. Clearbridge Energy MLP Total Return Fund does not pay a dividend. Pennantpark Floating Rate Capital pays out 107.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

27.0% of Pennantpark Floating Rate Capital shares are owned by institutional investors. 1.0% of Pennantpark Floating Rate Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Pennantpark Floating Rate Capital and Clearbridge Energy MLP Total Return Fund’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pennantpark Floating Rate Capital $59.50 million 8.12 $36.32 million $1.06 11.75
Clearbridge Energy MLP Total Return Fund N/A N/A N/A N/A N/A

Pennantpark Floating Rate Capital has higher revenue and earnings than Clearbridge Energy MLP Total Return Fund.

Analyst Recommendations

This is a summary of recent recommendations for Pennantpark Floating Rate Capital and Clearbridge Energy MLP Total Return Fund, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pennantpark Floating Rate Capital 0 0 4 0 3.00
Clearbridge Energy MLP Total Return Fund 0 0 0 0 N/A

Pennantpark Floating Rate Capital presently has a consensus price target of $14.69, indicating a potential upside of 17.88%. Given Pennantpark Floating Rate Capital’s higher possible upside, equities analysts clearly believe Pennantpark Floating Rate Capital is more favorable than Clearbridge Energy MLP Total Return Fund.

Profitability

This table compares Pennantpark Floating Rate Capital and Clearbridge Energy MLP Total Return Fund’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pennantpark Floating Rate Capital 47.64% 7.49% 4.48%
Clearbridge Energy MLP Total Return Fund N/A N/A N/A

Risk and Volatility

Pennantpark Floating Rate Capital has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Clearbridge Energy MLP Total Return Fund has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.

Summary

Pennantpark Floating Rate Capital beats Clearbridge Energy MLP Total Return Fund on 9 of the 11 factors compared between the two stocks.

About Pennantpark Floating Rate Capital

PennantPark Floating Rate Capital Ltd. is a business development company. The Company is a closed-end, externally managed and non-diversified investment company. Its investment objectives are to generate current income and capital appreciation by investing primarily in floating rate loans and other investments made to the United States middle-market companies. It provides first lien secured debt and other opportunistic financings (senior notes, second lien, mezzanine, private high yield debt, and preferred and common stock) to middle market sponsors and companies. Its investments may include equity features, such as direct investments in the equity securities of borrowers or warrants or options to buy a minority interest in a portfolio company. It has investments in various sectors, including aerospace and defense; consumer services; healthcare and pharmaceuticals, and others. Its investment activities are managed by the investment advisor, PennantPark Investment Advisers, LLC.

About Clearbridge Energy MLP Total Return Fund

ClearBridge Energy MLP Total Return Fund Inc. is a non-diversified, closed-end management investment company. The Fund’s investment objective is to provide a high level of total return, consisting of cash distributions and capital appreciation. The Fund seeks to achieve its objective by investing primarily in energy master limited partnerships (MLPs). Under normal market conditions, the Fund invests at least 80% of its managed assets in energy MLPs. Energy entities are engaged in the business of exploring, developing, producing, gathering, transporting, processing, storing, refining, distributing, mining or marketing natural gas, natural gas liquids (including propane), crude oil, refined petroleum products or coal. Legg Mason Partners Fund Advisor, LLC (LMPFA) is the Fund’s investment manager and ClearBridge Investments, LLC is the Fund’s subadvisor.

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