Blackrock Taxable Municipal Bond Trust (NYSE: BBN) and Gladstone Capital Corporation (NASDAQ:GLAD) are both financials companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitabiliy, analyst recommendations, earnings and valuation.

Profitability

This table compares Blackrock Taxable Municipal Bond Trust and Gladstone Capital Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blackrock Taxable Municipal Bond Trust N/A N/A N/A
Gladstone Capital Corporation 85.01% 9.88% 6.26%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Blackrock Taxable Municipal Bond Trust and Gladstone Capital Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blackrock Taxable Municipal Bond Trust 0 0 0 0 N/A
Gladstone Capital Corporation 1 1 1 0 2.00

Gladstone Capital Corporation has a consensus target price of $9.08, indicating a potential downside of 8.25%. Given Gladstone Capital Corporation’s higher probable upside, analysts clearly believe Gladstone Capital Corporation is more favorable than Blackrock Taxable Municipal Bond Trust.

Institutional & Insider Ownership

15.9% of Gladstone Capital Corporation shares are held by institutional investors. 6.5% of Gladstone Capital Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Gladstone Capital Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 8.5%. Blackrock Taxable Municipal Bond Trust does not pay a dividend. Gladstone Capital Corporation pays out 62.2% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Blackrock Taxable Municipal Bond Trust and Gladstone Capital Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Blackrock Taxable Municipal Bond Trust N/A N/A N/A N/A N/A
Gladstone Capital Corporation N/A N/A N/A $1.35 7.33

Summary

Gladstone Capital Corporation beats Blackrock Taxable Municipal Bond Trust on 8 of the 9 factors compared between the two stocks.

Blackrock Taxable Municipal Bond Trust Company Profile

BlackRock Taxable Municipal Bond Trust (the Trust) is a non-diversified, closed-end management investment company. The Trust’s investment objective is to seek high current income, with a secondary objective of capital appreciation. The Trust seeks to achieve its investment objectives by investing primarily in a portfolio of taxable municipal securities, including Build America Bonds (BABs), issued by state and local governments to finance capital projects, such as public schools, roads, transportation infrastructure, bridges, ports and public buildings. It also has the ability to invest up to 20% of its managed assets in securities other than taxable municipal securities. It may invest at least 80% of its managed assets in securities that at the time of purchase are investment-grade quality. It invests in various sectors, including utilities, transportation, education, tobacco, commercial services and supplies, and housing. The Trust’s investment manager is BlackRock Advisors, LLC.

Gladstone Capital Corporation Company Profile

Gladstone Capital Corporation is a closed-end, non-diversified management investment company, operating as a business development company (BDC). The objectives of the Company are to achieve and grow current income by investing in debt securities of established businesses that it believes will provide stable earnings and cash flow to pay expenses, make principal and interest payments on its outstanding indebtedness and make distributions to stockholders that grow over time, and to provide its stockholders with long-term capital appreciation in the value of its assets by investing in equity securities of established businesses that it believes can grow over time to permit it to sell its equity investments for capital gains. The Company is focused on investing in lower middle-market companies in the United States. It has investments in south, Midwest, west and northeast of the United States. Its portfolio allocation includes debt investments and equity investments.

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