Nuveen Massachusetts Pre Income Mun Fd (NYSE:NMT) and Solar Senior Capital (NASDAQ:SUNS) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.
This table compares Nuveen Massachusetts Pre Income Mun Fd and Solar Senior Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nuveen Massachusetts Pre Income Mun Fd||N/A||N/A||N/A|
|Solar Senior Capital||38.53%||8.50%||4.60%|
This is a breakdown of current recommendations and price targets for Nuveen Massachusetts Pre Income Mun Fd and Solar Senior Capital, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nuveen Massachusetts Pre Income Mun Fd||0||0||0||0||N/A|
|Solar Senior Capital||0||0||1||0||3.00|
Solar Senior Capital has a consensus price target of $18.50, indicating a potential upside of 8.00%. Given Solar Senior Capital’s higher probable upside, analysts plainly believe Solar Senior Capital is more favorable than Nuveen Massachusetts Pre Income Mun Fd.
Earnings & Valuation
This table compares Nuveen Massachusetts Pre Income Mun Fd and Solar Senior Capital’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nuveen Massachusetts Pre Income Mun Fd||N/A||N/A||N/A||N/A||N/A|
|Solar Senior Capital||$39.81 million||6.90||$13.81 million||$1.41||12.15|
Solar Senior Capital has higher revenue and earnings than Nuveen Massachusetts Pre Income Mun Fd.
Nuveen Massachusetts Pre Income Mun Fd pays an annual dividend of $0.51 per share and has a dividend yield of 4.0%. Solar Senior Capital pays an annual dividend of $1.41 per share and has a dividend yield of 8.2%. Solar Senior Capital pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Solar Senior Capital has increased its dividend for 3 consecutive years. Solar Senior Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
Nuveen Massachusetts Pre Income Mun Fd has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500. Comparatively, Solar Senior Capital has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.
Insider & Institutional Ownership
5.7% of Nuveen Massachusetts Pre Income Mun Fd shares are held by institutional investors. Comparatively, 21.1% of Solar Senior Capital shares are held by institutional investors. 5.7% of Solar Senior Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Solar Senior Capital beats Nuveen Massachusetts Pre Income Mun Fd on 11 of the 12 factors compared between the two stocks.
About Nuveen Massachusetts Pre Income Mun Fd
Nuveen Massachusetts Quality Municipal Income Fund is a closed ended fixed income mutual fund launched by Nuveen Investments, Inc. The fund is co-managed by Nuveen Fund Advisors LLC and Nuveen Asset Management, LLC. It invests in the fixed income markets of Massachusetts, United States. The fund primarily invests in undervalued municipal securities and other related investments which are exempt from regular federal and Massachusetts income taxes. It seeks to invest in investment grade securities that are rated Baa/BBB or above by S&P, Moody's, or Fitch. The fund employs fundamental analysis with a focus on bottom-up stock picking approach to create its portfolio. It benchmarks the performance of its portfolio against the Standard & Poor's (S&P) Massachusetts Municipal Bond Index and Standard & Poor's (S&P) National Municipal Bond Index. The fund was formerly known as Nuveen Massachusetts Premium Income Municipal Fund. Nuveen Massachusetts Quality Municipal Income Fund was formed on January 12, 1993 and is domiciled in the United States.
About Solar Senior Capital
Solar Senior Capital Ltd. is a business development company specializing in investments in leveraged, middle-market companies in the United States. The fund invests in the form of senior secured loans, including first lien, unitranche, and second lien debt instruments. It does not invest in start-up companies or companies having speculative business plans. The fund prefers debt investments between $5 million and $30 million in companies with EBITDA between $20 million and $60 million.
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