Solar Senior Capital (NASDAQ:SUNS) and AllianceBernstein Global Hgh Incm Fd (NYSE:AWF) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Solar Senior Capital pays an annual dividend of $1.20 per share and has a dividend yield of 9.6%. AllianceBernstein Global Hgh Incm Fd pays an annual dividend of $0.79 per share and has a dividend yield of 7.4%. Solar Senior Capital pays out 85.1% 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.
Volatility & Risk
Solar Senior Capital has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, AllianceBernstein Global Hgh Incm Fd has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.
Valuation and Earnings
This table compares Solar Senior Capital and AllianceBernstein Global Hgh Incm Fd’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Solar Senior Capital||$40.09 million||5.02||$22.94 million||$1.41||8.90|
|AllianceBernstein Global Hgh Incm Fd||N/A||N/A||N/A||N/A||N/A|
Solar Senior Capital has higher revenue and earnings than AllianceBernstein Global Hgh Incm Fd.
This is a breakdown of recent ratings and recommmendations for Solar Senior Capital and AllianceBernstein Global Hgh Incm Fd, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Solar Senior Capital||0||0||2||0||3.00|
|AllianceBernstein Global Hgh Incm Fd||0||0||0||0||N/A|
Solar Senior Capital currently has a consensus price target of $17.00, suggesting a potential upside of 35.46%. Given Solar Senior Capital’s higher probable upside, analysts plainly believe Solar Senior Capital is more favorable than AllianceBernstein Global Hgh Incm Fd.
This table compares Solar Senior Capital and AllianceBernstein Global Hgh Incm Fd’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Solar Senior Capital||-16.84%||8.87%||3.76%|
|AllianceBernstein Global Hgh Incm Fd||N/A||N/A||N/A|
Institutional and Insider Ownership
20.4% of Solar Senior Capital shares are held by institutional investors. Comparatively, 21.0% of AllianceBernstein Global Hgh Incm Fd shares are held by institutional investors. 5.7% of Solar Senior Capital shares are held by insiders. Comparatively, 1.0% of AllianceBernstein Global Hgh Incm Fd 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.
Solar Senior Capital beats AllianceBernstein Global Hgh Incm Fd on 9 of the 12 factors compared between the two stocks.
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.
AllianceBernstein Global Hgh Incm Fd Company Profile
AllianceBernstein Global High Income Fund is a close-ended fixed income mutual fund launched and managed by AllianceBernstein L.P. It invests in fixed income markets across the globe. The fund primarily invests in lower-rated corporate debt securities and government bonds. It employs a combination of fundamental and quantitative analysis to create its portfolio. The fund benchmarks the performance of its portfolio against a composite index comprised of JPMorgan Government Bond Index-Emerging Markets, JPMorgan Emerging Markets Bond Index Global, and the Barclays U.S. Corporate High Yield 2% Issuer Capped Index. It was previously known as Alliance World Dollar Government Fund II, Inc. AllianceBernstein Global High Income Fund was formed on May 20, 1993 and is domiciled in the United States.
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