Nuveen California Municipal Value Fund (NYSE:NCA) and Solar Senior Capital (NASDAQ:SUNS) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Nuveen California Municipal Value Fund and Solar Senior Capital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nuveen California Municipal Value Fund 0 0 0 0 N/A
Solar Senior Capital 0 0 2 0 3.00

Solar Senior Capital has a consensus target price of $17.00, suggesting a potential upside of 46.93%. Given Solar Senior Capital’s higher possible upside, analysts clearly believe Solar Senior Capital is more favorable than Nuveen California Municipal Value Fund.

Profitability

This table compares Nuveen California Municipal Value Fund and Solar Senior Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nuveen California Municipal Value Fund N/A N/A N/A
Solar Senior Capital -16.84% 8.87% 3.76%

Risk & Volatility

Nuveen California Municipal Value Fund has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500. Comparatively, Solar Senior Capital has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Valuation and Earnings

This table compares Nuveen California Municipal Value Fund and Solar Senior Capital’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nuveen California Municipal Value Fund N/A N/A N/A N/A N/A
Solar Senior Capital $40.09 million 4.63 $22.94 million $1.41 8.21

Solar Senior Capital has higher revenue and earnings than Nuveen California Municipal Value Fund.

Institutional and Insider Ownership

12.1% of Nuveen California Municipal Value Fund shares are held by institutional investors. Comparatively, 19.3% of Solar Senior Capital shares are held by institutional investors. 1.0% of Nuveen California Municipal Value Fund shares are held by insiders. Comparatively, 5.7% of Solar Senior Capital shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Nuveen California Municipal Value Fund pays an annual dividend of $0.31 per share and has a dividend yield of 3.2%. Solar Senior Capital pays an annual dividend of $1.41 per share and has a dividend yield of 12.2%. Solar Senior Capital pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Solar Senior Capital has increased its dividend for 3 consecutive years. Solar Senior Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Solar Senior Capital beats Nuveen California Municipal Value Fund on 10 of the 12 factors compared between the two stocks.

Nuveen California Municipal Value Fund Company Profile

Nuveen California Municipal Value Fund, Inc. is a closed-ended fixed income mutual fund launched by Nuveen Investments, Inc. The fund is co-managed by Nuveen Fund Advisors LLC and Nuveen Asset Management, LLC. It invests in the fixed income markets of California. The fund invests primarily in municipal securities rated Baa/BBB or better. It invests in securities that provide income exempt from federal and California income tax. The fund employs fundamental analysis with bottom-up stock picking approach to create its portfolio. It benchmarks the performance of its portfolio against the S&P California Municipal Bond Index and the S&P National Municipal Bond Index. Nuveen California Municipal Value Fund, Inc. was formed on October 7, 1987 and is domiciled in the United States.

Solar Senior Capital Company Profile

Solar Senior Capital Ltd. is a business development company specializing in investments in leveraged, middle-market companies in the United States. The fund invests in the form of senior secured loans, including first lien, unitranche, and second lien debt instruments. It does not invest in start-up companies or companies having speculative business plans. The fund prefers debt investments between $5 million and $30 million in companies with EBITDA between $20 million and $60 million.

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