Blackrock Taxable Municipal Bond Trust (NYSE: BBN) and Harvest Capital Credit Corporation (NASDAQ:HCAP) are both financials companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.
This is a breakdown of current ratings and recommmendations for Blackrock Taxable Municipal Bond Trust and Harvest Capital Credit Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Blackrock Taxable Municipal Bond Trust||0||0||0||0||N/A|
|Harvest Capital Credit Corporation||0||1||0||0||2.00|
Harvest Capital Credit Corporation has a consensus price target of $13.50, suggesting a potential upside of 1.96%. Given Harvest Capital Credit Corporation’s higher possible upside, analysts clearly believe Harvest Capital Credit Corporation is more favorable than Blackrock Taxable Municipal Bond Trust.
This table compares Blackrock Taxable Municipal Bond Trust and Harvest Capital Credit Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Blackrock Taxable Municipal Bond Trust||N/A||N/A||N/A|
|Harvest Capital Credit Corporation||27.50%||11.71%||6.97%|
Harvest Capital Credit Corporation pays an annual dividend of $1.35 per share and has a dividend yield of 10.2%. Blackrock Taxable Municipal Bond Trust does not pay a dividend. Harvest Capital Credit Corporation pays out 150.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Earnings and Valuation
This table compares Blackrock Taxable Municipal Bond Trust and Harvest Capital Credit Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Blackrock Taxable Municipal Bond Trust||N/A||N/A||N/A||N/A||N/A|
|Harvest Capital Credit Corporation||N/A||N/A||N/A||$0.90||14.71|
Insider & Institutional Ownership
5.8% of Harvest Capital Credit Corporation shares are held by institutional investors. 9.5% of Harvest Capital Credit Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Harvest Capital Credit Corporation beats Blackrock Taxable Municipal Bond Trust on 7 of the 8 factors compared between the two stocks.
About Blackrock Taxable Municipal Bond Trust
BlackRock Taxable Municipal Bond Trust (the Trust) is a non-diversified, closed-end management investment company. The Trust’s investment objective is to seek high current income, with a secondary objective of capital appreciation. The Trust seeks to achieve its investment objectives by investing primarily in a portfolio of taxable municipal securities, including Build America Bonds (BABs), issued by state and local governments to finance capital projects, such as public schools, roads, transportation infrastructure, bridges, ports and public buildings. It also has the ability to invest up to 20% of its managed assets in securities other than taxable municipal securities. It may invest at least 80% of its managed assets in securities that at the time of purchase are investment-grade quality. It invests in various sectors, including utilities, transportation, education, tobacco, commercial services and supplies, and housing. The Trust’s investment manager is BlackRock Advisors, LLC.
About Harvest Capital Credit Corporation
Harvest Capital Credit Corporation is an externally managed, closed-end, non-diversified management investment company. The Company operates as a business development company and provides customized financing solutions for small to mid-sized companies. Its investment objective is to generate both current income and capital appreciation by making direct investments in the form of subordinated debt, senior debt, and to a lesser extent, minority equity investments in privately-held the United States small to mid-sized companies. Its investment portfolio includes over 56.8% of senior secured term loans, 40.8% of junior secured term loans, 1.3% of equity investments and 1.1% of collateralized loan obligation (CLO) equity at fair value. It may also invest in other investments, such as loans to larger, publicly-traded companies, high-yield bonds and distressed debt securities. It may also invest in debt and equity securities issued by CLO funds. HCAP Advisors LLC is its investment adviser.
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