MVC Capital (MVC) & Strategic Global Government Fund Inc. Closed-End Fund (RCS) Head-To-Head Contrast

MVC Capital (NYSE:MVC) and Strategic Global Government Fund Inc. Closed-End Fund (NYSE:RCS) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Earnings & Valuation

This table compares MVC Capital and Strategic Global Government Fund Inc. Closed-End Fund’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MVC Capital $22.89 million 7.12 -$10.53 million $0.20 45.95
Strategic Global Government Fund Inc. Closed-End Fund N/A N/A N/A N/A N/A

Strategic Global Government Fund Inc. Closed-End Fund has lower revenue, but higher earnings than MVC Capital.

Institutional & Insider Ownership

41.4% of MVC Capital shares are held by institutional investors. Comparatively, 7.4% of Strategic Global Government Fund Inc. Closed-End Fund shares are held by institutional investors. 12.6% of MVC Capital shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares MVC Capital and Strategic Global Government Fund Inc. Closed-End Fund’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MVC Capital -60.27% 1.19% 0.76%
Strategic Global Government Fund Inc. Closed-End Fund N/A N/A N/A

Volatility and Risk

MVC Capital has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Strategic Global Government Fund Inc. Closed-End Fund has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for MVC Capital and Strategic Global Government Fund Inc. Closed-End Fund, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MVC Capital 0 0 1 0 3.00
Strategic Global Government Fund Inc. Closed-End Fund 0 0 0 0 N/A

MVC Capital presently has a consensus target price of $11.00, suggesting a potential upside of 19.70%. Given MVC Capital’s higher possible upside, equities research analysts plainly believe MVC Capital is more favorable than Strategic Global Government Fund Inc. Closed-End Fund.

Dividends

MVC Capital pays an annual dividend of $0.60 per share and has a dividend yield of 6.5%. Strategic Global Government Fund Inc. Closed-End Fund pays an annual dividend of $0.85 per share and has a dividend yield of 8.8%. MVC Capital pays out 300.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MVC Capital has increased its dividend for 2 consecutive years.

Summary

MVC Capital beats Strategic Global Government Fund Inc. Closed-End Fund on 9 of the 12 factors compared between the two stocks.

About MVC Capital

MVC Capital, Inc. is a business development company specializing in equity, acquisition financing, mezzanine financing, management buyouts, leveraged buildups, corporate partnerships, PIPE transactions, going private transactions, private company recapitalizations, operational turnarounds, and growth and expansion capital transaction financing. The company seeks to invest in mature, small, and middle-market companies. It seeks to invest in companies in the consumer products, business services, industrial manufacturing and services, automotive retailing, energy, food and food service, financial services, insurance, industrial distribution and value-added distribution, medical devices and equipment, specialty chemicals, and security sectors. The company prefers to invest in companies based in the United States. The firm typically invests between $3 million and $25 million for control and non-control stakes in companies with revenues between $10 million and $150 million and EBITDA between $3 million and $25 million. It prefers to be the lead investor in transactions and also co-invests in companies with other private equity sponsors. The company invests in the form of preferred and common equity, and warrants or rights to acquire equity interests; bridge loans; term loans; debt; cash flow loans; senior and subordinated loans; convertible securities; venture capital; mezzanine; and private equity investments. It exits its investments in the form of maturity of loan, public offering, sale, mergers and acquisitions, and financial recapitalizations. It prefers to take majority stake in companies.

About Strategic Global Government Fund Inc. Closed-End Fund

PIMCO Strategic Global Government Fund, Inc. is a closed-ended fixed income mutual fund launched and managed by Allianz Global Investors Fund Management LLC. The fund is co-managed by Pacific Investment Management Company LLC. It invests in fixed income markets across the globe. The fund primarily invests in government securities, including bonds issued or guaranteed by the United States or foreign governments, by their agencies, authorities or instrumentalities, or by supranational entities. It employs fundamental analysis with a focus on top down stock picking approach to create its portfolio. PIMCO Strategic Global Government Fund, Inc. was formed on February 24, 1994 and is domiciled in the United States.

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