Analyzing SuRo Capital (NASDAQ:SSSS) and Invesco California Value Municipal Income Trust (NYSE:VCV)

SuRo Capital (NASDAQ:SSSS) and Invesco California Value Municipal Income Trust (NYSE:VCV) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for SuRo Capital and Invesco California Value Municipal Income Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SuRo Capital	0	0	3	0	3.00
Invesco California Value Municipal Income Trust	0	0	0	0	0.00

SuRo Capital currently has a consensus target price of $7.00, indicating a potential upside of 18.04%. Given SuRo Capital’s stronger consensus rating and higher possible upside, equities research analysts plainly believe SuRo Capital is more favorable than Invesco California Value Municipal Income Trust.

Dividends

SuRo Capital pays an annual dividend of $0.11 per share and has a dividend yield of 1.9%. Invesco California Value Municipal Income Trust pays an annual dividend of $0.69 per share and has a dividend yield of 6.4%. SuRo Capital pays out -5.8% of its earnings in the form of a dividend.

Institutional & Insider Ownership

12.9% of SuRo Capital shares are held by institutional investors. Comparatively, 18.8% of Invesco California Value Municipal Income Trust shares are held by institutional investors. 6.0% of SuRo Capital shares are held by insiders. Comparatively, 6.1% of Invesco California Value Municipal Income Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

SuRo Capital has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, Invesco California Value Municipal Income Trust has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Profitability

This table compares SuRo Capital and Invesco California Value Municipal Income Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SuRo Capital	-801.00%	-7.28%	-5.10%
Invesco California Value Municipal Income Trust	N/A	N/A	N/A

Earnings & Valuation

This table compares SuRo Capital and Invesco California Value Municipal Income Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SuRo Capital	-$33.35 million	-4.20	$5.07 million	($1.89)	-3.14
Invesco California Value Municipal Income Trust	$51.29 million	N/A	N/A	N/A	N/A

SuRo Capital has higher earnings, but lower revenue than Invesco California Value Municipal Income Trust.

Summary

Invesco California Value Municipal Income Trust beats SuRo Capital on 7 of the 12 factors compared between the two stocks.

About SuRo Capital

SuRo Capital Corp. is a business development company. The firm seeks to invest in growth capital, late stage and venture capital-backed private companies. SuRo Capital Corp. was founded in 2010 and is based in San Francisco, California with additional office in New York, New York.

About Invesco California Value Municipal Income Trust

Invesco California Value Municipal Income Trust is a closed-ended fixed income mutual fund launched by Invesco Ltd. The fund is co-managed by Invesco Advisers, Inc., Invesco Asset Management (Japan) Limited, Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Canada Ltd., Invesco Hong Kong Limited, and Invesco Senior Secured Management, Inc. It invests in the fixed income markets of the United States. The fund primarily invests in investment grade California municipal securities which include municipal bonds, municipal notes, municipal commercial paper, and lease obligations. It employs fundamental analysis with bottom-up security selection approach to create its portfolio. The fund was formerly known as Invesco Van Kampen California Value Municipal Income Trust. Invesco California Value Municipal Income Trust was formed on April 30, 1993 and is domiciled in the United States.