Contrasting BlackRock Enhanced Global Dividend Trust (BOE) & Solar Capital (SLRC)

BlackRock Enhanced Global Dividend Trust (NYSE: BOE) and Solar Capital (NASDAQ:SLRC) are both financials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Profitability

This table compares BlackRock Enhanced Global Dividend Trust and Solar Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BlackRock Enhanced Global Dividend Trust N/A N/A N/A
Solar Capital 54.87% 7.30% 3.96%

Analyst Ratings

This is a breakdown of current recommendations and price targets for BlackRock Enhanced Global Dividend Trust and Solar Capital, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BlackRock Enhanced Global Dividend Trust 0 0 0 0 N/A
Solar Capital 0 3 2 0 2.40

Solar Capital has a consensus target price of $23.10, suggesting a potential upside of 7.39%. Given Solar Capital’s higher probable upside, analysts plainly believe Solar Capital is more favorable than BlackRock Enhanced Global Dividend Trust.

Institutional & Insider Ownership

63.0% of Solar Capital shares are owned by institutional investors. 5.9% of Solar Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares BlackRock Enhanced Global Dividend Trust and Solar Capital’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
BlackRock Enhanced Global Dividend Trust N/A N/A N/A N/A N/A
Solar Capital N/A N/A N/A $1.88 11.44

Dividends

Solar Capital pays an annual dividend of $1.60 per share and has a dividend yield of 7.4%. BlackRock Enhanced Global Dividend Trust does not pay a dividend. Solar Capital pays out 85.1% 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 Capital beats BlackRock Enhanced Global Dividend Trust on 8 of the 9 factors compared between the two stocks.

About BlackRock Enhanced Global Dividend Trust

BlackRock Enhanced Global Dividend Trust (the Trust), formerly BlackRock Global Opportunities Equity Trust, is a diversified, closed-end management investment company. The Trust’s investment objective is to provide current income and current gains, with a secondary objective of long-term capital appreciation. The Trust seeks to achieve its investment objectives by investing primarily in equity securities issued by companies located in countries throughout the world and utilizing an option writing (selling) strategy. The Trust focuses on investing in sectors, including information technology, financials, healthcare, materials, energy and utilities. The Trust invests at least 80% of its assets in equity securities or options on equity securities or indices or sectors of equity securities. The Trust invests amount of its total assets in foreign issuers. BlackRock Advisors, LLC is its investment advisor.

About Solar Capital

Solar Capital Ltd. is a closed-end, externally managed, non-diversified management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. It invests in privately held the United States middle market companies. It invests in leveraged middle market companies in the form of senior secured loans, unitranche loans, mezzanine loans and equity securities. It may also invest in public companies that are thinly traded. Its business is focused primarily on the direct origination of investments through portfolio companies or their financial sponsors. Its investments generally range between $5 million and $100 million each. In addition, the Company may invest a portion of its portfolio in other types of investments, which it refers to as opportunistic investments. The Company’s investment activities are managed by Solar Capital Partners, LLC (Solar Capital Partners or the Investment Advisor).

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