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

Valuation & Earnings

This table compares Full Circle Capital Corp and Solar Senior Capital’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Full Circle Capital Corp N/A N/A N/A N/A N/A
Solar Senior Capital N/A N/A N/A $1.49 11.01

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Full Circle Capital Corp and Solar Senior Capital, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Full Circle Capital Corp 0 0 0 0 N/A
Solar Senior Capital 0 1 2 0 2.67

Solar Senior Capital has a consensus target price of $17.17, suggesting a potential upside of 4.61%. Given Solar Senior Capital’s higher probable upside, analysts plainly believe Solar Senior Capital is more favorable than Full Circle Capital Corp.

Profitability

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

Net Margins Return on Equity Return on Assets
Full Circle Capital Corp -11.16% -1.78% -1.24%
Solar Senior Capital 76.07% 7.98% 4.22%

Institutional & Insider Ownership

31.1% of Solar Senior Capital shares are held by institutional investors. 5.6% of Solar Senior Capital shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Full Circle Capital Corp has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, Solar Senior Capital has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Dividends

Solar Senior Capital pays an annual dividend of $1.41 per share and has a dividend yield of 8.6%. Full Circle Capital Corp does not pay a dividend. Solar Senior Capital pays out 94.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Solar Senior Capital beats Full Circle Capital Corp on 9 of the 10 factors compared between the two stocks.

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).

Solar Senior Capital Company Profile

Solar Senior Capital Ltd. is a closed-end, externally managed, non-diversified management investment company. The Company’s investment objective is to seek to maximize current income consistent with the preservation of capital. The Company seeks to achieve its investment objective by directly and indirectly investing in senior loans, including first lien, unitranche, and second lien debt instruments, made to private middle-market companies whose debt is rated below investment grade, which it refers to collectively as senior loans. It may also invest in debt of public companies that are thinly traded or in equity securities. Under normal market conditions, at least 80% of the value of its net assets (including the amount of any borrowings for investment purposes) will be invested in senior loans. It invests in privately held the United States middle-market companies. Its investment activities are managed by Solar Capital Partners, LLC (Solar Capital Partners or the Investment Advisor).

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