Liberty All-Star Equity Fund (NYSE: USA) and Full Circle Capital Corp (NASDAQ:FULL) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Risk & Volatility

Liberty All-Star Equity Fund has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Full Circle Capital Corp has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.

Dividends

Liberty All-Star Equity Fund pays an annual dividend of $0.13 per share and has a dividend yield of 2.2%. Full Circle Capital Corp does not pay a dividend.

Analyst Ratings

This is a breakdown of recent ratings for Liberty All-Star Equity Fund and Full Circle Capital Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty All-Star Equity Fund 0 1 2 0 2.67
Full Circle Capital Corp 0 0 0 0 N/A

Liberty All-Star Equity Fund presently has a consensus price target of $44.50, suggesting a potential upside of 646.64%. Given Liberty All-Star Equity Fund’s higher possible upside, research analysts plainly believe Liberty All-Star Equity Fund is more favorable than Full Circle Capital Corp.

Earnings and Valuation

This table compares Liberty All-Star Equity Fund and Full Circle Capital Corp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Liberty All-Star Equity Fund N/A N/A N/A N/A N/A
Full Circle Capital Corp N/A N/A N/A N/A N/A

Profitability

This table compares Liberty All-Star Equity Fund and Full Circle Capital Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liberty All-Star Equity Fund N/A N/A N/A
Full Circle Capital Corp -11.16% -1.78% -1.24%

Institutional & Insider Ownership

28.5% of Liberty All-Star Equity Fund shares are held by institutional investors. 0.1% of Liberty All-Star Equity Fund shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Liberty All-Star Equity Fund beats Full Circle Capital Corp on 9 of the 9 factors compared between the two stocks.

About Liberty All-Star Equity Fund

Liberty All-Star Equity Fund is a diversified, closed-end management investment fund. The Fund seeks total investment return comprising long-term capital appreciation and current income through investing primarily in a diversified portfolio of equity securities. It allocates its portfolio assets on an approximately equal basis among several independent investment management organizations having various investment styles recommended and monitored by its investment advisor. It invests at least 80% of its net assets in a diversified portfolio of equity securities. The Fund invests in various sectors, including financials, information technology, healthcare, consumer discretionary, consumer staples, industrials, energy, materials, real estate, utilities and telecommunication services. Its investment managers invest primarily for pension funds, endowments, foundations and other institutions. The Fund’s investment advisor is ALPS Advisors, Inc.

About Full Circle Capital Corp

Full Circle Capital Corporation is a non-diversified closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. The Company invests primarily in senior secured loans and second lien loans, mezzanine loans and equity securities issued by lower middle-market and middle-market companies that operate in a range of industries. In its lending activities, the Company focuses primarily on portfolio companies with both tangible and intangible assets available as collateral and security against its loan to help mitigate its risk of loss, and cash flow to cover debt service. The Company focuses primarily on senior secured loans and stretch senior secured loans (unitranche loans), which combine characteristics of first-lien senior secured loans and second-lien or subordinated loans. The Company’s investment advisor is Full Circle Advisors, LLC (Full Circle Advisors).

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