Analyzing Gladstone Investment (GAIN) & Eaton Vance Tax Managed Buy Write Opport (ETV)

Gladstone Investment (NASDAQ: GAIN) and Eaton Vance Tax Managed Buy Write Opport (NYSE:ETV) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Dividends

Gladstone Investment pays an annual dividend of $0.78 per share and has a dividend yield of 7.0%. Eaton Vance Tax Managed Buy Write Opport does not pay a dividend. Gladstone Investment pays out 57.8% of its earnings in the form of a dividend.

Volatility & Risk

Gladstone Investment has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Eaton Vance Tax Managed Buy Write Opport has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.

Insider & Institutional Ownership

17.4% of Gladstone Investment shares are held by institutional investors. 2.4% of Gladstone Investment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Gladstone Investment and Eaton Vance Tax Managed Buy Write Opport, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gladstone Investment 0 2 0 0 2.00
Eaton Vance Tax Managed Buy Write Opport 0 0 0 0 N/A

Gladstone Investment presently has a consensus price target of $10.50, suggesting a potential downside of 5.91%. Given Gladstone Investment’s higher probable upside, analysts plainly believe Gladstone Investment is more favorable than Eaton Vance Tax Managed Buy Write Opport.

Profitability

This table compares Gladstone Investment and Eaton Vance Tax Managed Buy Write Opport’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gladstone Investment 80.07% 6.95% 4.27%
Eaton Vance Tax Managed Buy Write Opport N/A N/A N/A

Earnings & Valuation

This table compares Gladstone Investment and Eaton Vance Tax Managed Buy Write Opport’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gladstone Investment $51.88 million 7.00 $44.76 million $1.35 8.27
Eaton Vance Tax Managed Buy Write Opport N/A N/A N/A N/A N/A

Gladstone Investment has higher revenue and earnings than Eaton Vance Tax Managed Buy Write Opport.

Summary

Gladstone Investment beats Eaton Vance Tax Managed Buy Write Opport on 9 of the 10 factors compared between the two stocks.

About Gladstone Investment

Gladstone Investment Corporation is an externally managed, closed-end, non-diversified management investment company. The Company’s investment objectives 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 provide its stockholders with long-term capital appreciation in the value of its assets by investing in equity securities, generally in combination with the aforementioned debt securities, of businesses that it believes can grow over time to permit it to sell its equity investments for capital gains. It has investments in sectors, such as chemicals, plastics, and rubber, and home and office furnishings, house wares, and durable consumer products, among others. Its investment advisor is Gladstone Management Corporation.

About Eaton Vance Tax Managed Buy Write Opport

Eaton Vance Tax-Managed Buy-Write Opportunities Fund is a United States-based diversified, closed-end management investment company. The Fund’s investment objective is to provide income and gains, with a secondary objective of capital appreciation. It invests in a portfolio of common stocks and writes call options on one or more United States indices on a substantial portion of the value of its common stock portfolio to generate earnings from the option. It evaluates returns on an after tax basis and seeks to minimize and defer federal income taxes incurred by shareholders in connection with their investment in the Fund. Its portfolio of investments include hotels, restaurants and leisure; life sciences tools and services; software; technology hardware, storage and peripherals; technology hardware, storage and peripherals, and personal products, among others. Its investment advisor is Eaton Vance Management and its sub-advisor is Parametric Portfolio Associates LLC.

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