Fifth Street Senior Floating Rate Corp. (FSFR) versus Full Circle Capital Corp (FULL) Financial Review

Fifth Street Senior Floating Rate Corp. (NASDAQ: FSFR) and Full Circle Capital Corp (NASDAQ:FULL) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Fifth Street Senior Floating Rate Corp. and Full Circle Capital Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fifth Street Senior Floating Rate Corp. 29.89% 7.27% 3.83%
Full Circle Capital Corp -11.16% -1.78% -1.24%

Valuation and Earnings

This table compares Fifth Street Senior Floating Rate Corp. and Full Circle Capital Corp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fifth Street Senior Floating Rate Corp. N/A N/A N/A $0.47 18.60
Full Circle Capital Corp N/A N/A N/A N/A N/A

Insider and Institutional Ownership

23.3% of Fifth Street Senior Floating Rate Corp. shares are owned by institutional investors. 0.4% of Fifth Street Senior Floating Rate Corp. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Fifth Street Senior Floating Rate Corp. has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Full Circle Capital Corp has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.

Dividends

Fifth Street Senior Floating Rate Corp. pays an annual dividend of $0.76 per share and has a dividend yield of 8.7%. Full Circle Capital Corp does not pay a dividend. Fifth Street Senior Floating Rate Corp. pays out 161.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Fifth Street Senior Floating Rate Corp. and Full Circle Capital Corp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fifth Street Senior Floating Rate Corp. 0 2 0 0 2.00
Full Circle Capital Corp 0 0 0 0 N/A

Fifth Street Senior Floating Rate Corp. presently has a consensus target price of $9.25, suggesting a potential upside of 5.84%. Given Fifth Street Senior Floating Rate Corp.’s higher possible upside, research analysts plainly believe Fifth Street Senior Floating Rate Corp. is more favorable than Full Circle Capital Corp.

Summary

Fifth Street Senior Floating Rate Corp. beats Full Circle Capital Corp on 7 of the 9 factors compared between the two stocks.

Fifth Street Senior Floating Rate Corp. Company Profile

Fifth Street Senior Floating Rate Corp. is a closed-end, non-diversified management investment company. The Company operates as a specialty finance company. The Company’s investment objective is to maximize its portfolio’s total return by generating current income from its debt investments while seeking to preserve its capital. The Company invests in portfolio companies primarily in the form of senior loans. The Company invests in senior secured loans, including first lien, unitranche and second lien debt instruments. The Company may also invest in unsecured loans, including subordinated loans, issued by private middle market companies, and senior and subordinated loans issued by public companies and equity investments. The senior loans that the Company targets have final maturities of 4 to 7 years. The Company seeks to invest in senior loans made primarily to private middle market companies. Fifth Street Management LLC is the investment advisor of the Company.

Full Circle Capital Corp Company Profile

Full Circle Capital Corporation is a non-diversified closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. The Company invests primarily in senior secured loans and second lien loans, mezzanine loans and equity securities issued by lower middle-market and middle-market companies that operate in a range of industries. In its lending activities, the Company focuses primarily on portfolio companies with both tangible and intangible assets available as collateral and security against its loan to help mitigate its risk of loss, and cash flow to cover debt service. The Company focuses primarily on senior secured loans and stretch senior secured loans (unitranche loans), which combine characteristics of first-lien senior secured loans and second-lien or subordinated loans. The Company’s investment advisor is Full Circle Advisors, LLC (Full Circle Advisors).

Receive News & Ratings for Fifth Street Senior Floating Rate Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Fifth Street Senior Floating Rate Corp. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply