TICC Capital (NASDAQ: TICC) and BlackRock LT Municipal Advantage Trust (NYSE:BTA) are both small-cap financials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.
Volatility & Risk
TICC Capital has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, BlackRock LT Municipal Advantage Trust has a beta of -0.13, suggesting that its share price is 113% less volatile than the S&P 500.
This table compares TICC Capital and BlackRock LT Municipal Advantage Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|BlackRock LT Municipal Advantage Trust||128.30%||9.69%||5.76%|
This is a summary of recent ratings and recommmendations for TICC Capital and BlackRock LT Municipal Advantage Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BlackRock LT Municipal Advantage Trust||2||6||4||0||2.17|
TICC Capital currently has a consensus price target of $5.50, suggesting a potential downside of 5.01%. BlackRock LT Municipal Advantage Trust has a consensus price target of $331.67, suggesting a potential upside of 2,824.75%. Given BlackRock LT Municipal Advantage Trust’s stronger consensus rating and higher probable upside, analysts clearly believe BlackRock LT Municipal Advantage Trust is more favorable than TICC Capital.
Earnings and Valuation
This table compares TICC Capital and BlackRock LT Municipal Advantage Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TICC Capital||$69.28 million||4.30||$110.36 million||$1.05||5.51|
|BlackRock LT Municipal Advantage Trust||N/A||N/A||N/A||$0.39||29.08|
TICC Capital has higher revenue and earnings than BlackRock LT Municipal Advantage Trust. TICC Capital is trading at a lower price-to-earnings ratio than BlackRock LT Municipal Advantage Trust, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
16.4% of TICC Capital shares are held by institutional investors. 5.9% of TICC Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
TICC Capital pays an annual dividend of $0.80 per share and has a dividend yield of 13.8%. BlackRock LT Municipal Advantage Trust does not pay a dividend. TICC Capital pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
BlackRock LT Municipal Advantage Trust beats TICC Capital on 8 of the 14 factors compared between the two stocks.
About TICC Capital
TICC Capital Corp. is a closed-end, non-diversified management investment company. The Company’s investment objective is to maximize its portfolio’s total return. The Company primarily focuses on seeking current income by investing primarily in corporate debt securities. The Company’s debt investments may include syndicated loans and bilateral loans. The Company holds interests in structured finance investments, including collateralized loan obligation (CLO) investment vehicles that own debt securities. CLO investments may also include warehouse facilities, which are financing structures intended to aggregate loans that may be used to form the basis of a CLO vehicle. The Company may also invest in publicly traded debt and/or equity securities. Its portfolio includes its investments in various industries, such as structured finance, telecommunication services, business services, printing and publishing, and financial intermediaries. TICC Management, LLC is its investment advisor.
About BlackRock LT Municipal Advantage Trust
BlackRock Long-Term Municipal Advantage Trust (the Trust) is a non-diversified, closed-end management investment company. The Trust’s investment objective is to provide current income exempt from regular federal income tax. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in municipal obligations and derivative instruments with exposure to such municipal obligations, in each case that are exempt from federal income tax (except that the interest may be subject to the federal alternative minimum tax). The Trust invests primarily in long-term municipal bonds with a maturity of more than 10 years at the time of investment. The Trust’s municipal bond portfolio will have a dollar-weighted average maturity of more than 10 years. The Trust may invest directly in such securities or synthetically through the use of derivatives. BlackRock Advisors, LLC is the investment manager of the Trust.
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