Head to Head Contrast: SURO Capital (NASDAQ:SSSS) and PIMCO Strategic Income Fund (NYSE:RCS)

SURO Capital (NASDAQ:SSSS) and PIMCO Strategic Income Fund (NYSE:RCS) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for SURO Capital and PIMCO Strategic Income Fund, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SURO Capital	0	0	5	1	3.17
PIMCO Strategic Income Fund	0	0	0	0	0.00

SURO Capital presently has a consensus price target of $15.00, indicating a potential upside of 17.19%. Given SURO Capital’s stronger consensus rating and higher probable upside, analysts plainly believe SURO Capital is more favorable than PIMCO Strategic Income Fund.

Dividends

SURO Capital pays an annual dividend of $0.50 per share and has a dividend yield of 3.9%. PIMCO Strategic Income Fund pays an annual dividend of $0.48 per share and has a dividend yield of 9.3%. SURO Capital pays out 7.2% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares SURO Capital and PIMCO Strategic Income Fund”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SURO Capital	$218.95 million	1.52	$48.81 million	$6.98	1.83
PIMCO Strategic Income Fund	N/A	N/A	N/A	N/A	N/A

SURO Capital has higher revenue and earnings than PIMCO Strategic Income Fund.

Risk & Volatility

SURO Capital has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500. Comparatively, PIMCO Strategic Income Fund has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Profitability

This table compares SURO Capital and PIMCO Strategic Income Fund’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SURO Capital	10,695.73%	-6.61%	-5.13%
PIMCO Strategic Income Fund	N/A	N/A	N/A

Insider & Institutional Ownership

12.9% of SURO Capital shares are owned by institutional investors. Comparatively, 13.5% of PIMCO Strategic Income Fund shares are owned by institutional investors. 8.3% of SURO Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

SURO Capital beats PIMCO Strategic Income Fund on 8 of the 13 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 PIMCO Strategic Income Fund

PIMCO Strategic Global Government Fund, Inc. is a closed-ended fixed income mutual fund launched and managed by Allianz Global Investors Fund Management LLC. The fund is co-managed by Pacific Investment Management Company LLC. It invests in fixed income markets across the globe. The fund primarily invests in government securities, including bonds issued or guaranteed by the United States or foreign governments, by their agencies, authorities or instrumentalities, or by supranational entities. It employs fundamental analysis with a focus on top down stock picking approach to create its portfolio. PIMCO Strategic Global Government Fund, Inc. was formed on February 24, 1994 and is domiciled in the United States.