iShares NASDAQ Biotechnology Index (IBB) vs. Solar Senior Capital (SUNS) Head-To-Head Contrast

iShares NASDAQ Biotechnology Index (NASDAQ: IBB) and Solar Senior Capital (NASDAQ:SUNS) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Dividends

iShares NASDAQ Biotechnology Index pays an annual dividend of $0.42 per share and has a dividend yield of 0.4%. Solar Senior Capital pays an annual dividend of $1.41 per share and has a dividend yield of 8.6%. Solar Senior Capital pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares iShares NASDAQ Biotechnology Index and Solar Senior Capital’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
iShares NASDAQ Biotechnology Index N/A N/A N/A N/A N/A
Solar Senior Capital $32.17 million 8.20 $23.38 million $1.41 11.67

Solar Senior Capital has higher revenue and earnings than iShares NASDAQ Biotechnology Index.

Profitability

This table compares iShares NASDAQ Biotechnology Index and Solar Senior Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
iShares NASDAQ Biotechnology Index N/A N/A N/A
Solar Senior Capital 67.60% 8.38% 4.42%

Institutional and Insider Ownership

60.2% of iShares NASDAQ Biotechnology Index shares are owned by institutional investors. Comparatively, 25.6% of Solar Senior Capital shares are owned by institutional investors. 5.6% of Solar Senior 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.

Risk and Volatility

iShares NASDAQ Biotechnology Index has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Solar Senior Capital has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for iShares NASDAQ Biotechnology Index and Solar Senior Capital, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
iShares NASDAQ Biotechnology Index 0 0 0 0 N/A
Solar Senior Capital 0 0 0 0 N/A

Summary

Solar Senior Capital beats iShares NASDAQ Biotechnology Index on 6 of the 9 factors compared between the two stocks.

About iShares NASDAQ Biotechnology Index

iShares Nasdaq Biotechnology ETF (the Fund), formerly iShares Nasdaq Biotechnology Index Fund, is an exchange-traded fund (ETF). The Fund seeks investment results that correspond generally to the price and yield performance of the NASDAQ Biotechnology Index (the Index). The Index contains securities of NASDAQ listed companies that are classified according to the Industry Classification Benchmark as either biotechnology or pharmaceuticals, which also meet other eligibility criteria determined by NASDAQ. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. The Fund’s investment advisor is BlackRock Fund Advisors, which is indirectly owned by BlackRock, Inc.

About Solar Senior Capital

Solar Senior Capital Ltd. is a closed-end, externally managed, non-diversified management investment company. The Company’s investment objective is to seek to maximize current income consistent with the preservation of capital. The Company seeks to achieve its investment objective by directly and indirectly investing in senior loans, including first lien, unitranche, and second lien debt instruments, made to private middle-market companies whose debt is rated below investment grade, which it refers to collectively as senior loans. It may also invest in debt of public companies that are thinly traded or in equity securities. Under normal market conditions, at least 80% of the value of its net assets (including the amount of any borrowings for investment purposes) will be invested in senior loans. It invests in privately held the United States middle-market companies. Its investment activities are managed by Solar Capital Partners, LLC (Solar Capital Partners or the Investment Advisor).

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