Amern Cap Sr Fl/COM (NYSE: AI) and Arlington Asset Investment (NYSE:AI) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.
Insider & Institutional Ownership
27.1% of Amern Cap Sr Fl/COM shares are held by institutional investors. Comparatively, 39.5% of Arlington Asset Investment shares are held by institutional investors. 0.2% of Amern Cap Sr Fl/COM shares are held by company insiders. Comparatively, 2.8% of Arlington Asset Investment shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a summary of current recommendations and price targets for Amern Cap Sr Fl/COM and Arlington Asset Investment, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Amern Cap Sr Fl/COM||0||0||0||0||N/A|
|Arlington Asset Investment||0||3||1||0||2.25|
Arlington Asset Investment has a consensus price target of $13.08, suggesting a potential upside of 27.52%. Given Arlington Asset Investment’s higher probable upside, analysts clearly believe Arlington Asset Investment is more favorable than Amern Cap Sr Fl/COM.
This table compares Amern Cap Sr Fl/COM and Arlington Asset Investment’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Amern Cap Sr Fl/COM||30.24%||3.27%||1.82%|
|Arlington Asset Investment||-24.83%||-8.69%||-0.70%|
Valuation & Earnings
This table compares Amern Cap Sr Fl/COM and Arlington Asset Investment’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Amern Cap Sr Fl/COM||$17.52 million||2.01||$5.70 million||N/A||N/A|
|Arlington Asset Investment||$121.25 million||2.43||$17.43 million||$0.66||15.55|
Arlington Asset Investment has higher revenue and earnings than Amern Cap Sr Fl/COM.
Amern Cap Sr Fl/COM pays an annual dividend of $1.07 per share and has a dividend yield of 30.3%. Arlington Asset Investment pays an annual dividend of $1.50 per share and has a dividend yield of 14.6%. Arlington Asset Investment pays out 227.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility & Risk
Amern Cap Sr Fl/COM has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Arlington Asset Investment has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.
Arlington Asset Investment beats Amern Cap Sr Fl/COM on 7 of the 13 factors compared between the two stocks.
About Amern Cap Sr Fl/COM
American Capital Senior Floating, Ltd. is a business development company specializing in first lien and second lien floating rate loans. It also invests in equity tranches of collateralized loan obligations equity tranches of collateralized loan obligations.
About Arlington Asset Investment
Arlington Asset Investment Corp. (NYSE: AI) is a principal investment firm that currently invests primarily in mortgage-related and other assets. The Company is headquartered in the Washington, D.C. metropolitan area. For more information, please visit www.arlingtonasset.com.
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