CSW Industrials (NYSE:CSW) vs. Western Asset High Yield Defined Opportunity Fund (NYSE:HYI) Head-To-Head Comparison

CSW Industrials (NYSE:CSW) and Western Asset High Yield Defined Opportunity Fund (NYSE:HYI) are both financial services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Earnings & Valuation

This table compares CSW Industrials and Western Asset High Yield Defined Opportunity Fund”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CSW Industrials	$1.08 billion	4.26	$112.04 million	$6.68	42.30
Western Asset High Yield Defined Opportunity Fund	$14.71 million	N/A	N/A	N/A	N/A

CSW Industrials has higher revenue and earnings than Western Asset High Yield Defined Opportunity Fund.

Analyst Ratings

This is a summary of recent ratings and target prices for CSW Industrials and Western Asset High Yield Defined Opportunity Fund, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CSW Industrials	0	5	1	3	2.78
Western Asset High Yield Defined Opportunity Fund	0	0	0	0	0.00

CSW Industrials presently has a consensus target price of $328.57, suggesting a potential upside of 16.27%. Given CSW Industrials’ stronger consensus rating and higher possible upside, research analysts clearly believe CSW Industrials is more favorable than Western Asset High Yield Defined Opportunity Fund.

Insider and Institutional Ownership

82.8% of CSW Industrials shares are owned by institutional investors. 1.3% of CSW Industrials shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares CSW Industrials and Western Asset High Yield Defined Opportunity Fund’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CSW Industrials	10.35%	15.91%	9.05%
Western Asset High Yield Defined Opportunity Fund	N/A	N/A	N/A

Dividends

CSW Industrials pays an annual dividend of $1.20 per share and has a dividend yield of 0.4%. Western Asset High Yield Defined Opportunity Fund pays an annual dividend of $1.14 per share and has a dividend yield of 10.8%. CSW Industrials pays out 18.0% of its earnings in the form of a dividend. CSW Industrials has raised its dividend for 6 consecutive years.

Summary

CSW Industrials beats Western Asset High Yield Defined Opportunity Fund on 11 of the 13 factors compared between the two stocks.

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.

About Western Asset High Yield Defined Opportunity Fund

Western Asset High Yield Defined Opportunity Fund Inc. is a closed ended fixed income mutual fund launched and managed by Legg Mason Partners Fund Advisor, LLC. The fund is co-managed by Western Asset Management Company, Western Asset Management Company Pte. Ltd., Western Asset Management Company Ltd and Western Asset Management Company Limited. It invests fixed income markets across the globe. The fund invests in high-yield corporate fixed income securities with varying maturities. It invests in below investment grade fixed income securities. Western Asset High Yield Defined Opportunity Fund Inc. was formed on July 20, 2010 and is domiciled in the United States.