The Critical Analysis: BlackRock Capital Investment Corporation (BKCC) vs. BlackRock LT Municipal Advantage Trust (BTA)

The Critical Analysis: BlackRock Capital Investment Corporation (BKCC) vs. BlackRock LT Municipal Advantage Trust (BTA)

BlackRock Capital Investment Corporation (NASDAQ: BKCC) and BlackRock LT Municipal Advantage Trust (NYSE:BTA) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.

Dividends

BlackRock Capital Investment Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 9.9%. BlackRock LT Municipal Advantage Trust does not pay a dividend. BlackRock Capital Investment Corporation pays out -1,028.6% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares BlackRock Capital Investment Corporation and BlackRock LT Municipal Advantage Trust’s revenue, earnings per share and valuation.

Analyst Ratings

This is a summary of current ratings and target prices for BlackRock Capital Investment Corporation and BlackRock LT Municipal Advantage Trust, as reported by MarketBeat.

BlackRock Capital Investment Corporation presently has a consensus price target of $8.00, indicating a potential upside of 9.74%. BlackRock LT Municipal Advantage Trust has a consensus price target of $357.00, indicating a potential upside of 2,867.58%. Given BlackRock LT Municipal Advantage Trust’s stronger consensus rating and higher probable upside, analysts clearly believe BlackRock LT Municipal Advantage Trust is more favorable than BlackRock Capital Investment Corporation.

Profitability

This table compares BlackRock Capital Investment Corporation and BlackRock LT Municipal Advantage Trust’s net margins, return on equity and return on assets.

Insider and Institutional Ownership

29.0% of BlackRock Capital Investment Corporation shares are held by institutional investors. 1.3% of BlackRock Capital Investment Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

BlackRock Capital Investment Corporation beats BlackRock LT Municipal Advantage Trust on 7 of the 10 factors compared between the two stocks.

About BlackRock Capital Investment Corporation

BlackRock Capital Investment Corporation is an externally-managed, non-diversified, closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation through its debt and equity investments. The Company provides middle-market companies with a range of financing solutions, including senior and junior secured, unsecured and subordinated debt securities and loans, and equity securities. Its targeted investment typically ranges between $10 million and $50 million. The Company generally seeks to invest in companies that operate in a range of industries. The Company’s investments are in senior and junior secured, unsecured and subordinated loans to the United States private and certain public middle-market companies. The Company’s investment advisor is BlackRock Advisors, LLC.

About BlackRock LT Municipal Advantage Trust

BlackRock Long-Term Municipal Advantage Trust (the Trust) is a non-diversified, closed-end management investment company. The Trust’s investment objective is to provide current income exempt from regular federal income tax. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in municipal obligations and derivative instruments with exposure to such municipal obligations, in each case that are exempt from federal income tax (except that the interest may be subject to the federal alternative minimum tax). The Trust invests primarily in long-term municipal bonds with a maturity of more than 10 years at the time of investment. The Trust’s municipal bond portfolio will have a dollar-weighted average maturity of more than 10 years. The Trust may invest directly in such securities or synthetically through the use of derivatives. BlackRock Advisors, LLC is the investment manager of the Trust.

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