Lightbridge (NASDAQ:LTBR) and Blackrock Capital Investment (NASDAQ:BKCC) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.
Earnings & Valuation
This table compares Lightbridge and Blackrock Capital Investment’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Blackrock Capital Investment||$83.87 million||4.88||-$9.16 million||$0.64||9.30|
This table compares Lightbridge and Blackrock Capital Investment’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Blackrock Capital Investment||11.81%||9.17%||6.26%|
Institutional and Insider Ownership
4.9% of Lightbridge shares are held by institutional investors. Comparatively, 31.3% of Blackrock Capital Investment shares are held by institutional investors. 6.6% of Lightbridge shares are held by insiders. Comparatively, 1.1% of Blackrock Capital Investment shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Blackrock Capital Investment pays an annual dividend of $0.72 per share and has a dividend yield of 12.1%. Lightbridge does not pay a dividend. Blackrock Capital Investment pays out 112.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk and Volatility
Lightbridge has a beta of 2.19, meaning that its share price is 119% more volatile than the S&P 500. Comparatively, Blackrock Capital Investment has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Lightbridge and Blackrock Capital Investment, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Blackrock Capital Investment||1||1||0||0||1.50|
Blackrock Capital Investment has a consensus price target of $6.00, suggesting a potential upside of 0.84%. Given Blackrock Capital Investment’s higher possible upside, analysts plainly believe Blackrock Capital Investment is more favorable than Lightbridge.
Blackrock Capital Investment beats Lightbridge on 8 of the 12 factors compared between the two stocks.
Lightbridge Corporation operates as a nuclear fuel technology company worldwide. It operates through two segments, Technology and Consulting. It offers all-metal fuel for operating and new build reactors; all-uranium seed and blanket fuel for existing plants and new build reactors; and thorium-based seed and blanket fuel for existing and new build reactors. The company also provides nuclear power consulting and strategic advisory services to commercial and governmental entities. Its services include integrated strategic advice across a range of areas, including regulatory development, nuclear reactor site selection, procurement and deployment, reactor and fuel technology, international relations, program management, and infrastructure development. The company was formerly known as Thorium Power, Ltd. and changed its name to Lightbridge Corporation in September 2009. Lightbridge Corporation was founded in 1992 and is based in Reston, Virginia.
About Blackrock Capital Investment
BlackRock Capital Investment Corporation, formerly known as BlackRock Kelso Capital Corporation, is a Business Development Company specializing in investments in middle market companies. The fund invests in all industries. It prefers to invest between $10 million and $50 million and can invest more or less in companies with EBITDA or operating cash flow between $10 million and $50 million. The fund invests in the form of senior and junior secured, unsecured, and subordinated debt securities and loans including cash flow, asset backed, and junior lien facilities and equity securities. It's equity investments can be structured in the form of warrants, preferred stock, common equity co-investments, and direct investments in common stock. The fund's debt investments are principally structured to provide for current cash interest and to a lesser extent non-cash interest, particularly with subordinated debt investments, through a pay-in-kind (PIK) feature. It can also make non-control investments.
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