SLR Investment (NASDAQ:SLRC – Get Free Report) and MFS High Income Municipal Trust (NYSE:CXE – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.
Insider & Institutional Ownership
35.3% of SLR Investment shares are held by institutional investors. Comparatively, 34.4% of MFS High Income Municipal Trust shares are held by institutional investors. 8.6% of SLR Investment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Dividends
SLR Investment pays an annual dividend of $1.64 per share and has a dividend yield of 9.8%. MFS High Income Municipal Trust pays an annual dividend of $0.18 per share and has a dividend yield of 4.8%. SLR Investment pays out 92.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation and Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
SLR Investment | $229.31 million | 3.99 | $76.39 million | $1.77 | 9.46 |
MFS High Income Municipal Trust | N/A | N/A | N/A | N/A | N/A |
SLR Investment has higher revenue and earnings than MFS High Income Municipal Trust.
Volatility and Risk
SLR Investment has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, MFS High Income Municipal Trust has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for SLR Investment and MFS High Income Municipal Trust, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
SLR Investment | 2 | 2 | 0 | 0 | 1.50 |
MFS High Income Municipal Trust | 0 | 0 | 0 | 0 | 0.00 |
SLR Investment presently has a consensus price target of $15.25, suggesting a potential downside of 8.96%. Given SLR Investment’s stronger consensus rating and higher probable upside, equities analysts clearly believe SLR Investment is more favorable than MFS High Income Municipal Trust.
Profitability
This table compares SLR Investment and MFS High Income Municipal Trust’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
SLR Investment | 40.89% | 9.73% | 3.90% |
MFS High Income Municipal Trust | N/A | N/A | N/A |
Summary
SLR Investment beats MFS High Income Municipal Trust on 10 of the 11 factors compared between the two stocks.
About SLR Investment
SLR Investment Corp. is a business development company specializing in secured debt (first lien unitranche and second lien), subordinated (unsecured) debt, minority equity, leveraged buyouts, acquisitions, recapitalizations, general refinancing, growth capital and strategic income-oriented control equity investments in leveraged middle market companies. The fund invests in aerospace and defense; air freight & logistics; asset management; automotive; banking; beverage, food and tobacco; building products; buildings and real estate; broadcasting and entertainment; cargo transport; commercial services and supplies; communications equipment; chemicals, plastics and rubber; containers, packaging and glass; construction & engineering; diversified/conglomerate manufacturing; consumer Finance; distributors; diversified/conglomerate services; diversified financial services; diversified real estate activities; food products; Footwear; Education Services; diversified telecommunications services; electronics; farming and agriculture; finance; grocery; health care equipment and supplies; health care facilities; education and childcare; home and office furnishing, durable consumer products; hotels, motels, inns and gaming; insurance; restaurants, leisure, amusement, and entertainment; leisure equipment tolls and services, media, multiline retail, multi sector holdings; paper and forest products; personal products; professional services, research and consulting services, software; specialty retail; textiles apparel and luxury goods, thrifts and mortgage finance, trading companies and distributors, utilities, and wireless telecommunication services; industrial conglomerates; internet software and services, IT services, machinery; mining, steel, iron, and non-precious metals; oil and gas; personal, food and miscellaneous services; printing and publishing; retail stores; telecommunications; textiles and leather; and utilities. It also invests in life sciences with focus on specialty pharmaceuticals, medical devices, biotech, health Care Providers and services; health Care technology, enabling technologies and tools. The fund primarily invests in United States. The fund’s investments generally range between $5 million and $100 million. The fund invests in companies with revenues between $50 million and $1 billion and EBITDA between $15 million and $100 million. It invests in the form of senior secured loans, mezzanine loans, and equity securities. It may also seek investments in thinly traded public companies and also make secondary investments. The fund makes non-control equity investments. It primarily exits within three years of the initial capital commitment.
About MFS High Income Municipal Trust
MFS High Income Municipal Trust is a close ended fixed income mutual fund launched and managed by Massachusetts Financial Services Company. The fund invests in the fixed income markets. It primarily invests in municipal bonds and local general obligations of various sectors, such as multifamily, hospitals, care retirement, and investor-owned utilities. The fund benchmarks the performance of its portfolio against Barclays Municipal Bond Index. It was formerly known as Colonial High Income Municipal Trust. MFS High Income Municipal Trust was formed on February 17, 1989 and is domiciled in United States.
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