Critical Review: Medley Capital (MCC) & BlackRock Enhanced Global Dividend Trust (BOE)
Medley Capital (NYSE: MCC) and BlackRock Enhanced Global Dividend Trust (NYSE:BOE) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.
Medley Capital pays an annual dividend of $0.64 per share and has a dividend yield of 11.1%. BlackRock Enhanced Global Dividend Trust does not pay a dividend. Medley Capital pays out -640.0% of its earnings in the form of a dividend.
Medley Capital has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, BlackRock Enhanced Global Dividend Trust has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.
Earnings and Valuation
This table compares Medley Capital and BlackRock Enhanced Global Dividend Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Medley Capital||$120.75 million||2.60||-$27.96 million||($0.10)||-57.70|
|BlackRock Enhanced Global Dividend Trust||N/A||N/A||N/A||N/A||N/A|
BlackRock Enhanced Global Dividend Trust has higher revenue, but lower earnings than Medley Capital.
This table compares Medley Capital and BlackRock Enhanced Global Dividend Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|BlackRock Enhanced Global Dividend Trust||N/A||N/A||N/A|
This is a summary of recent ratings and target prices for Medley Capital and BlackRock Enhanced Global Dividend Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BlackRock Enhanced Global Dividend Trust||0||0||0||0||N/A|
Medley Capital currently has a consensus price target of $7.00, indicating a potential upside of 21.32%. Given Medley Capital’s higher possible upside, equities research analysts clearly believe Medley Capital is more favorable than BlackRock Enhanced Global Dividend Trust.
Institutional & Insider Ownership
29.4% of Medley Capital shares are owned by institutional investors. 8.7% of Medley Capital shares are owned 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.
Medley Capital beats BlackRock Enhanced Global Dividend Trust on 9 of the 10 factors compared between the two stocks.
About Medley Capital
Medley Capital Corporation is a non-diversified closed-end management investment company. The Company’s investment objective is to generate current income and capital appreciation by lending directly to privately-held middle market companies, primarily through directly originated transactions to help these companies expand their business, refinance and make acquisitions. Its investment portfolio includes senior secured first lien term loans, senior secured second lien term loans, unitranche, senior secured first lien notes, subordinated notes and warrants and minority equity securities. It may invest up to 100% of its assets in securities acquired directly from issuers in privately negotiated transactions. Its portfolio of investments includes industries, including banking, finance, insurance and real estate; construction and building; healthcare and pharmaceuticals; beverage and food, and telecommunications. MCC Advisors LLC is the Company’s investment advisor.
About BlackRock Enhanced Global Dividend Trust
BlackRock Enhanced Global Dividend Trust (the Trust), formerly BlackRock Global Opportunities Equity Trust, is a diversified, closed-end management investment company. The Trust’s investment objective is to provide current income and current gains, with a secondary objective of long-term capital appreciation. The Trust seeks to achieve its investment objectives by investing primarily in equity securities issued by companies located in countries throughout the world and utilizing an option writing (selling) strategy. The Trust focuses on investing in sectors, including information technology, financials, healthcare, materials, energy and utilities. The Trust invests at least 80% of its assets in equity securities or options on equity securities or indices or sectors of equity securities. The Trust invests amount of its total assets in foreign issuers. BlackRock Advisors, LLC is its investment advisor.
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