Blackrock Muniyield Michign Qulty Fd (MIY) versus MVC Capital (MVC) Critical Survey

Blackrock Muniyield Michign Qulty Fd (NYSE:MIY) and MVC Capital (NYSE:MVC) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Dividends

Blackrock Muniyield Michign Qulty Fd pays an annual dividend of $0.63 per share and has a dividend yield of 4.7%. MVC Capital pays an annual dividend of $0.60 per share and has a dividend yield of 6.5%. MVC Capital pays out 300.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MVC Capital has increased its dividend for 2 consecutive years. MVC Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Blackrock Muniyield Michign Qulty Fd has a beta of 0.05, indicating that its share price is 95% less volatile than the S&P 500. Comparatively, MVC Capital has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Profitability

This table compares Blackrock Muniyield Michign Qulty Fd and MVC Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blackrock Muniyield Michign Qulty Fd N/A N/A N/A
MVC Capital -60.27% 1.19% 0.76%

Valuation and Earnings

This table compares Blackrock Muniyield Michign Qulty Fd and MVC Capital’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Blackrock Muniyield Michign Qulty Fd N/A N/A N/A N/A N/A
MVC Capital $22.89 million 7.12 -$10.53 million $0.20 45.95

Blackrock Muniyield Michign Qulty Fd has higher earnings, but lower revenue than MVC Capital.

Institutional and Insider Ownership

19.3% of Blackrock Muniyield Michign Qulty Fd shares are owned by institutional investors. Comparatively, 41.4% of MVC Capital shares are owned by institutional investors. 1.0% of Blackrock Muniyield Michign Qulty Fd shares are owned by insiders. Comparatively, 12.6% of MVC Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Blackrock Muniyield Michign Qulty Fd and MVC Capital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blackrock Muniyield Michign Qulty Fd 0 0 0 0 N/A
MVC Capital 0 0 1 0 3.00

MVC Capital has a consensus price target of $11.00, indicating a potential upside of 19.70%. Given MVC Capital’s higher possible upside, analysts plainly believe MVC Capital is more favorable than Blackrock Muniyield Michign Qulty Fd.

Summary

MVC Capital beats Blackrock Muniyield Michign Qulty Fd on 10 of the 12 factors compared between the two stocks.

Blackrock Muniyield Michign Qulty Fd Company Profile

BlackRock MuniYield Michigan Quality Fund, Inc. is a closed-ended fixed income mutual fund launched by BlackRock, Inc. It is managed by BlackRock Advisors, LLC. The fund invests in the fixed income markets of the United States. It primarily invests in investment grade, long-term municipal obligations exempt from federal income taxes and Michigan income taxes. BlackRock MuniYield Michigan Quality Fund, Inc. was formed on October 30, 1992 and is domiciled in the United States.

MVC Capital Company Profile

MVC Capital, Inc. is a business development company specializing in equity, acquisition financing, mezzanine financing, management buyouts, leveraged buildups, corporate partnerships, PIPE transactions, going private transactions, private company recapitalizations, operational turnarounds, and growth and expansion capital transaction financing. The company seeks to invest in mature, small, and middle-market companies. It seeks to invest in companies in the consumer products, business services, industrial manufacturing and services, automotive retailing, energy, food and food service, financial services, insurance, industrial distribution and value-added distribution, medical devices and equipment, specialty chemicals, and security sectors. The company prefers to invest in companies based in the United States. The firm typically invests between $3 million and $25 million for control and non-control stakes in companies with revenues between $10 million and $150 million and EBITDA between $3 million and $25 million. It prefers to be the lead investor in transactions and also co-invests in companies with other private equity sponsors. The company invests in the form of preferred and common equity, and warrants or rights to acquire equity interests; bridge loans; term loans; debt; cash flow loans; senior and subordinated loans; convertible securities; venture capital; mezzanine; and private equity investments. It exits its investments in the form of maturity of loan, public offering, sale, mergers and acquisitions, and financial recapitalizations. It prefers to take majority stake in companies.

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