Financial Analysis: CSW Industrials (NYSE:CSW) versus PIMCO Income Strategy Fund (NYSE:PFL)

PIMCO Income Strategy Fund (NYSE:PFL) and CSW Industrials (NYSE:CSW) are both financial services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.

Valuation and Earnings

This table compares PIMCO Income Strategy Fund and CSW Industrials”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PIMCO Income Strategy Fund	$47.36 million	N/A	N/A	N/A	N/A
CSW Industrials	$878.30 million	5.61	$136.65 million	$8.52	34.64

CSW Industrials has higher revenue and earnings than PIMCO Income Strategy Fund.

Dividends

PIMCO Income Strategy Fund pays an annual dividend of $1.08 per share and has a dividend yield of 12.8%. CSW Industrials pays an annual dividend of $1.08 per share and has a dividend yield of 0.4%. CSW Industrials pays out 12.7% of its earnings in the form of a dividend. CSW Industrials has increased its dividend for 6 consecutive years.

Profitability

This table compares PIMCO Income Strategy Fund and CSW Industrials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PIMCO Income Strategy Fund	N/A	N/A	N/A
CSW Industrials	14.88%	14.74%	11.10%

Analyst Ratings

This is a breakdown of current recommendations for PIMCO Income Strategy Fund and CSW Industrials, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PIMCO Income Strategy Fund	0	0	0	0	0.00
CSW Industrials	0	5	1	2	2.63

CSW Industrials has a consensus price target of $314.83, suggesting a potential upside of 6.67%. Given CSW Industrials’ stronger consensus rating and higher possible upside, analysts plainly believe CSW Industrials is more favorable than PIMCO Income Strategy Fund.

Institutional and Insider Ownership

82.8% of CSW Industrials shares are owned by institutional investors. 1.3% of CSW Industrials shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

CSW Industrials beats PIMCO Income Strategy Fund on 11 of the 13 factors compared between the two stocks.

About PIMCO Income Strategy Fund

PIMCO Income Strategy Fund is a closed-ended fixed income mutual fund launched and managed by Allianz Global Investors Fund Management LLC. The fund is co-managed by Pacific Investment Management Company LLC. It invests in fixed income markets across the globe. The fund invests in a diversified portfolio of floating rate debt instruments with an average duration of around three years. It employs fundamental analysis with top-down approach to create its portfolio. The fund was formerly known as PIMCO Floating Rate Income Fund. PIMCO Income Strategy Fund was formed on June 19, 2003 and is domiciled in the United States.

About CSW Industrials

CSW Industrials, Inc. operates as a diversified industrial company in the United States and internationally. It operates through three segments: Contractor Solutions, Engineered Building Solutions, and Specialized Reliability Solutions. The Contractor Solutions segment provides condensate pads, pans, pumps, switches, and traps; cements, diffusers, grilles, registers, solvents, thread sealants, and vents; line set covers; refrigerant caps; wire pulling head tools; electrical protection, chemical maintenance, and installation supplies for HVAC; ductless mini-split systems installation support tools and accessories; and drain waste and vent system products for use in HVAC/R, plumbing, general industrial, architecturally specified building products. The Engineered Building Solutions segment offers architectural railings and associated services; fire and smoke protection solutions; and pre-engineered and custom architectural building components for use in architecturally specified building products. The Specialized Reliability Solutions segment provides compounds, lubricants, lubricant management products, and sealants; desiccant breather filtration products; and contamination control, industrial maintenance and repair, rail friction modifiers, sealants, and operations solutions for use in energy, general industrial, mining, and rail transportation. The company was incorporated in 2014 and is headquartered in Dallas, Texas.