StoneCastle Financial (NASDAQ: BANX) and MFS Charter Income Trust (NYSE:MCR) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Dividends

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StoneCastle Financial pays an annual dividend of $1.52 per share and has a dividend yield of 7.2%. MFS Charter Income Trust does not pay a dividend. StoneCastle Financial pays out 86.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

StoneCastle Financial has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, MFS Charter Income Trust has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.

Earnings & Valuation

This table compares StoneCastle Financial and MFS Charter Income Trust’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
StoneCastle Financial $17.03 million 8.15 $7.01 million $1.76 12.06
MFS Charter Income Trust N/A N/A N/A N/A N/A

StoneCastle Financial has higher revenue and earnings than MFS Charter Income Trust.

Insider & Institutional Ownership

32.4% of StoneCastle Financial shares are held by institutional investors. 8.0% of StoneCastle Financial shares are held by company 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.

Profitability

This table compares StoneCastle Financial and MFS Charter Income Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
StoneCastle Financial 66.86% N/A N/A
MFS Charter Income Trust N/A N/A N/A

Analyst Ratings

This is a summary of recent ratings for StoneCastle Financial and MFS Charter Income Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
StoneCastle Financial 0 0 4 0 3.00
MFS Charter Income Trust 0 0 0 0 N/A

StoneCastle Financial currently has a consensus target price of $22.75, indicating a potential upside of 7.21%. Given StoneCastle Financial’s higher probable upside, research analysts plainly believe StoneCastle Financial is more favorable than MFS Charter Income Trust.

Summary

StoneCastle Financial beats MFS Charter Income Trust on 7 of the 9 factors compared between the two stocks.

About StoneCastle Financial

StoneCastle Financial Corp. is a non-diversified, closed-end management investment company. The Company’s primary investment objective is to provide stockholders with current income, and to a lesser extent capital appreciation. The Company generally invests in the senior debt, subordinated debt, preferred shares and common stock of community banks. The Company’s investment portfolio includes term loans, debt securities, trust preferred securities, preferred shares of credit securitization, preferred securities, convertible preferred stock, common stock, exchange traded fund, limited partnership interest and money market fund. The Company invests in bank issuers of various locations, such as California, Colorado, Florida, Georgia, Illinois, Kansas, Maine, Maryland, New Jersey, New York, Ohio, North Carolina, Oklahoma, South Carolina, Texas and West Virginia.

About MFS Charter Income Trust

MFS Charter Income Trust (Fund) is a diversified closed-end management investment company. The Fund’s investment objective is to seek high current income, but may also consider capital appreciation. The Fund normally invests in debt instruments. The Fund also invests in corporate bonds of the United States and/or foreign issuers, the United States Government securities, foreign government securities, mortgage-backed and other asset-backed securities and/or debt instruments of issuers located in emerging market countries. The Fund’s portfolio comprises bonds, floating rate loans, equities, cash and cash equivalent and other. It invests in a range of Fixed income sectors, such as high yield corporates non-united states government bonds, investment grade corporates, emerging markets bonds, commercial mortgage-backed securities, asset-backed securities and collateralized debt obligations. Massachusetts Financial Services Company is the Fund’s investment advisor.

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