Center Coast MLP & Infrastructure Fund (NYSE: CEN) and Solar Senior Capital (NASDAQ:SUNS) are both small-cap closed end funds companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings for Center Coast MLP & Infrastructure Fund and Solar Senior Capital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Center Coast MLP & Infrastructure Fund 0 0 0 0 N/A
Solar Senior Capital 0 0 2 0 3.00

Solar Senior Capital has a consensus price target of $17.75, indicating a potential downside of 1.22%. Given Solar Senior Capital’s higher probable upside, analysts plainly believe Solar Senior Capital is more favorable than Center Coast MLP & Infrastructure Fund.

Institutional & Insider Ownership

30.4% of Solar Senior Capital shares are owned by institutional investors. 5.6% of Solar Senior Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Center Coast MLP & Infrastructure Fund has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Solar Senior Capital has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.

Dividends

Solar Senior Capital pays an annual dividend of $1.41 per share and has a dividend yield of 7.8%. Center Coast MLP & Infrastructure Fund does not pay a dividend. Solar Senior Capital pays out 97.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Center Coast MLP & Infrastructure Fund and Solar Senior Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Center Coast MLP & Infrastructure Fund N/A N/A N/A
Solar Senior Capital 76.43% 8.39% 4.48%

Earnings & Valuation

This table compares Center Coast MLP & Infrastructure Fund and Solar Senior Capital’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Center Coast MLP & Infrastructure Fund N/A N/A N/A N/A N/A
Solar Senior Capital $27.20 million 10.59 $24.25 million $1.44 12.48

Solar Senior Capital has higher revenue and earnings than Center Coast MLP & Infrastructure Fund.

Summary

Solar Senior Capital beats Center Coast MLP & Infrastructure Fund on 9 of the 11 factors compared between the two stocks.

About Center Coast MLP & Infrastructure Fund

Center Coast MLP & Infrastructure Fund (the Fund) is a non-diversified, closed-end management investment company. The Fund’s investment objective is to provide a high level of total return with an emphasis on distributions to shareholders. The Fund seeks to achieve its investment objective by investing primarily in a portfolio of master limited partnerships (MLPs) and energy infrastructure companies. Under normal market conditions, the Fund will invest at least 80% of its Managed Assets in securities of MLPs and energy infrastructure companies. The Fund may invest up to 20% of its Managed Assets in unregistered or restricted securities, including securities issued by private companies. Its private investments may include investments in entities formed to own and operate particular energy infrastructure assets. The Fund invests in various sectors, such as fuel distribution and marketing, and natural gas transportation and storage. The Fund’s advisor is Center Coast Capital Advisors, LP.

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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