Helios Advantage Income Fund (NYSE: HAV) and Fidus Investment (NASDAQ:FDUS) are both financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Insider & Institutional Ownership

31.8% of Fidus Investment shares are held by institutional investors. 1.3% of Fidus Investment shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Helios Advantage Income Fund and Fidus Investment’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Helios Advantage Income Fund N/A N/A N/A N/A N/A
Fidus Investment $60.23 million 5.64 $41.57 million $1.98 7.00

Fidus Investment has higher revenue and earnings than Helios Advantage Income Fund.

Dividends

Fidus Investment pays an annual dividend of $1.56 per share and has a dividend yield of 11.3%. Helios Advantage Income Fund does not pay a dividend. Fidus Investment pays out 78.8% 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 Helios Advantage Income Fund and Fidus Investment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Helios Advantage Income Fund N/A N/A N/A
Fidus Investment 64.21% 9.18% 5.75%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Helios Advantage Income Fund and Fidus Investment, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Helios Advantage Income Fund 0 0 0 0 N/A
Fidus Investment 0 1 0 0 2.00

Fidus Investment has a consensus target price of $18.00, suggesting a potential upside of 29.87%.

Summary

Fidus Investment beats Helios Advantage Income Fund on 7 of the 8 factors compared between the two stocks.

Helios Advantage Income Fund Company Profile

Helios Advantage Income Fund, Inc. (the Fund) is a diversified, closed-end management investment company. The Fund seeks a high level of current income. The Fund seeks capital growth as a secondary investment objective. It invests a majority of its total assets in below-investment-grade debt securities. The Fund also may invest in investment grade debt securities, up to 15% of its total assets in foreign debt and foreign equity securities, and up to 25% of its total assets in domestic equity securities, including common and preferred stocks. The Fund invests in a range of below-investment-grade debt securities, including corporate bonds, mortgage-backed and asset-backed securities, and municipal and foreign government obligations, as well as securities of companies in bankruptcy reorganization proceedings or otherwise in the process of debt restructuring. The Fund’s investment advisor is Brookfield Investment Management Inc.

Fidus Investment Company Profile

Fidus Investment Corporation is a closed-end, non-diversified investment company. The Company provides customized debt and equity financing solutions to lower middle-market companies. The Company’s investment objective is to provide attractive risk-adjusted returns by generating both current income from its debt investments and capital appreciation from its equity-related investments. The Company typically invests in mezzanine debt, which includes senior subordinated notes and junior secured loans. The Company structures some of its debt investments as senior secured or unitranche loans. The Company’s equity securities typically consist of either a direct minority equity investment in common or preferred stock or membership/partnership interests of a portfolio company, or it may receive warrants to buy a minority equity interest in a portfolio company in connection with a debt investment. Its investment activities are managed by Fidus Investment Advisors, LLC, its investment advisor.

Receive News & Ratings for Helios Advantage Income Fund Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Helios Advantage Income Fund and related companies with MarketBeat.com's FREE daily email newsletter.