Analyzing Putnam Municipal Opportunities Trust (PMO) and Solar Capital (SLRC)

Putnam Municipal Opportunities Trust (NYSE:PMO) and Solar Capital (NASDAQ:SLRC) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Dividends

Putnam Municipal Opportunities Trust pays an annual dividend of $0.56 per share and has a dividend yield of 5.1%. Solar Capital pays an annual dividend of $1.64 per share and has a dividend yield of 7.9%.

Institutional and Insider Ownership

19.5% of Putnam Municipal Opportunities Trust shares are held by institutional investors. Comparatively, 59.7% of Solar Capital shares are held by institutional investors. 5.9% of Solar Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Putnam Municipal Opportunities Trust and Solar Capital’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Putnam Municipal Opportunities Trust N/A N/A N/A N/A N/A
Solar Capital N/A N/A N/A N/A N/A

Profitability

This table compares Putnam Municipal Opportunities Trust and Solar Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Putnam Municipal Opportunities Trust N/A N/A N/A
Solar Capital N/A N/A N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Putnam Municipal Opportunities Trust and Solar Capital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Putnam Municipal Opportunities Trust 0 0 0 0 N/A
Solar Capital 0 1 4 0 2.80

Solar Capital has a consensus price target of $24.00, indicating a potential upside of 15.61%. Given Solar Capital’s higher possible upside, analysts plainly believe Solar Capital is more favorable than Putnam Municipal Opportunities Trust.

Summary

Solar Capital beats Putnam Municipal Opportunities Trust on 5 of the 5 factors compared between the two stocks.

About Putnam Municipal Opportunities Trust

There is no company description available for Putnam Municipal Opportunities Trust.

About Solar Capital

Solar Capital Ltd. is a business development company specializing in secured debt (first lien unitranche and second lien), subordinated (unsecured) debt, minority equity, and strategic income-oriented control equity investments in leveraged middle market companies. The fund invests in aerospace and defense; air freight & logistics; asset management; automotive; banking; beverage, food and tobacco; building products; buildings and real estate; broadcasting and entertainment; cargo transport; commercial services and supplies; communications equipment; chemicals, plastics and rubber; containers, packaging and glass; construction & engineering; diversified/conglomerate manufacturing; consumer Finance; distributors; diversified/conglomerate services; diversified financial services; diversified real estate sctivities; food products; Footwear; Education Services; diversified telecommunications services; electronics; farming and agriculture; finance; grocery; health care equipment and supplies; health care facilities; education and childcare; home and office furnishing, durable consumer products; hotels, motels, inns and gaming; insurance; restaurants, leisure, amusement, and entertainment; leisure equipment tolls and services, media, multiline retail, multi sector holdings; paper and forest products; personal products; professional services, research and consulting services, software; specialty retail; textiles apparel and luxury goods, thrifts and mortgage finance, trading companies and distributors, utilities, and wireless telecommunication services; industrial conglomerates; internet software and services, IT services, machinery; mining, steel, iron, and non precious metals; oil and gas; personal, food and miscellaneous services; printing and publishing; retail stores; telecommunications; textiles and leather; and utilities. It also invests in life sciences with focus on specialty pharmaceuticals, medical devices, biotech, health Care Providers and services; health Care technology, enabling technologies and tools. The fund primarily invests in United States. The fund's investments generally range between $5 million and $100 million. The fund invests in companies with revenues between $50 million and $1 billion and EBITDA between $15 million and $100 million. It invests in the form of senior secured loans, mezzanine loans, and equity securities. It may also seek investments in thinly traded public companies and also make secondary investments. The fund makes non-control equity investments. It primarily exits within three years of the initial capital commitment.

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