Invesco Bond Fund (NYSE: VBF) and Medley Capital Corporation (NYSE:MCC) are both small-cap financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Profitability

This table compares Invesco Bond Fund and Medley Capital Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Invesco Bond Fund N/A N/A N/A
Medley Capital Corporation -6.07% 8.04% 3.92%

Valuation and Earnings

This table compares Invesco Bond Fund and Medley Capital Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Invesco Bond Fund N/A N/A N/A N/A N/A
Medley Capital Corporation $120.75 million 2.61 -$27.96 million ($0.11) -52.64

Invesco Bond Fund has higher revenue, but lower earnings than Medley Capital Corporation.

Institutional & Insider Ownership

17.6% of Invesco Bond Fund shares are held by institutional investors. Comparatively, 29.5% of Medley Capital Corporation shares are held by institutional investors. 1.0% of Invesco Bond Fund shares are held by insiders. Comparatively, 8.7% of Medley Capital Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Invesco Bond Fund and Medley Capital Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Invesco Bond Fund 0 0 0 0 N/A
Medley Capital Corporation 0 5 0 0 2.00

Medley Capital Corporation has a consensus price target of $7.00, suggesting a potential upside of 20.90%. Given Medley Capital Corporation’s higher possible upside, analysts plainly believe Medley Capital Corporation is more favorable than Invesco Bond Fund.

Volatility & Risk

Invesco Bond Fund has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500. Comparatively, Medley Capital Corporation has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Dividends

Invesco Bond Fund pays an annual dividend of $0.84 per share and has a dividend yield of 4.2%. Medley Capital Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 11.1%. Medley Capital Corporation pays out -581.8% of its earnings in the form of a dividend.

Summary

Medley Capital Corporation beats Invesco Bond Fund on 9 of the 10 factors compared between the two stocks.

Invesco Bond Fund Company Profile

Invesco Bond Fund is a diversified, closed-end management investment company. The Fund’s investment objective is to seek interest income while conserving capital. The Fund invests primarily in fixed-rate the United States investment-grade corporate bonds with flexibility to integrate approximately 20% of its total assets in non-investment-grade, the United States dollar denominated and non-United States dollar denominated securities of foreign issuers (both developed and emerging markets). The Fund also invests in government securities, asset-backed securities, commercial mortgage-backed securities and residential mortgage-backed securities. The Fund also invests in derivatives and other instruments that have similar economic characteristics to securities, in which it invests. Invesco Advisers, Inc. serves as the investment advisor of the Fund.

Medley Capital Corporation Company Profile

Medley Capital Corporation is a non-diversified closed-end management investment company. The Company’s investment objective is to generate current income and capital appreciation by lending directly to privately-held middle market companies, primarily through directly originated transactions to help these companies expand their business, refinance and make acquisitions. Its investment portfolio includes senior secured first lien term loans, senior secured second lien term loans, unitranche, senior secured first lien notes, subordinated notes and warrants and minority equity securities. It may invest up to 100% of its assets in securities acquired directly from issuers in privately negotiated transactions. Its portfolio of investments includes industries, including banking, finance, insurance and real estate; construction and building; healthcare and pharmaceuticals; beverage and food, and telecommunications. MCC Advisors LLC is the Company’s investment advisor.

Receive News & Ratings for Invesco Bond Fund Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Invesco Bond Fund and related companies with Analyst Ratings Network's FREE daily email newsletter.