Financial Analysis: Alcentra Capital Corp. (ABDC) vs. Full Circle Capital Corp (FULL)

Alcentra Capital Corp. (NASDAQ: ABDC) and Full Circle Capital Corp (NASDAQ:FULL) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.

Valuation and Earnings

This table compares Alcentra Capital Corp. and Full Circle Capital Corp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Alcentra Capital Corp. N/A N/A N/A ($0.08) -136.50
Full Circle Capital Corp N/A N/A N/A N/A N/A

Profitability

This table compares Alcentra Capital Corp. and Full Circle Capital Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alcentra Capital Corp. -2.77% 11.13% 6.86%
Full Circle Capital Corp -11.16% -1.78% -1.24%

Insider & Institutional Ownership

31.5% of Alcentra Capital Corp. shares are held by institutional investors. 5.0% of Alcentra Capital Corp. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Alcentra Capital Corp. pays an annual dividend of $1.36 per share and has a dividend yield of 12.5%. Full Circle Capital Corp does not pay a dividend. Alcentra Capital Corp. pays out -1,700.0% of its earnings in the form of a dividend.

Volatility & Risk

Alcentra Capital Corp. has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Full Circle Capital Corp has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Alcentra Capital Corp. and Full Circle Capital Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alcentra Capital Corp. 0 3 2 0 2.40
Full Circle Capital Corp 0 0 0 0 N/A

Alcentra Capital Corp. presently has a consensus target price of $13.50, suggesting a potential upside of 23.63%. Given Alcentra Capital Corp.’s higher possible upside, equities research analysts clearly believe Alcentra Capital Corp. is more favorable than Full Circle Capital Corp.

Summary

Alcentra Capital Corp. beats Full Circle Capital Corp on 10 of the 10 factors compared between the two stocks.

Alcentra Capital Corp. Company Profile

Alcentra Capital Corporation is a specialty finance company that operates as a non-diversified, closed-end management investment company. The Company operates as a business development company and a regulated investment company. It provides customized debt and equity financing solutions to lower middle-market companies, which are companies having annual earnings, before interest, taxes, depreciation and amortization of between $5 million and $15 million, and/or revenues of between $10 million and $100 million. Its investments range in size from $5 million to $15 million. Its investment objective is to generate both current income and capital appreciation primarily by making direct investments in lower middle-market companies in the form of senior debt, unitranche, second lien, subordinated debt and, to a lesser extent, senior debt and minority equity investments. Its investment focus is to make loans to, and selected equity investments in, privately-held lower-middle-market companies.

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).

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