Comparing Blackrock Muniyield Quality Fund II (NYSE:MQT) & MVC Capital (NYSE:MVC)

Blackrock Muniyield Quality Fund II (NYSE:MQT) and MVC Capital (NYSE:MVC) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Blackrock Muniyield Quality Fund II and MVC Capital, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blackrock Muniyield Quality Fund II 0 0 0 0 N/A
MVC Capital 0 0 1 0 3.00

MVC Capital has a consensus target price of $13.00, suggesting a potential upside of 35.28%. Given MVC Capital’s higher probable upside, analysts clearly believe MVC Capital is more favorable than Blackrock Muniyield Quality Fund II.

Dividends

Blackrock Muniyield Quality Fund II pays an annual dividend of $0.55 per share and has a dividend yield of 4.1%. MVC Capital pays an annual dividend of $0.68 per share and has a dividend yield of 7.1%. MVC Capital pays out 104.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MVC Capital has increased its dividend for 2 consecutive years. MVC Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

26.9% of Blackrock Muniyield Quality Fund II shares are held by institutional investors. Comparatively, 50.7% of MVC Capital shares are held by institutional investors. 1.0% of Blackrock Muniyield Quality Fund II shares are held by company insiders. Comparatively, 8.9% of MVC Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Blackrock Muniyield Quality Fund II has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500. Comparatively, MVC Capital has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Profitability

This table compares Blackrock Muniyield Quality Fund II and MVC Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blackrock Muniyield Quality Fund II N/A N/A N/A
MVC Capital 53.41% 5.13% 3.12%

Valuation and Earnings

This table compares Blackrock Muniyield Quality Fund II and MVC Capital’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Blackrock Muniyield Quality Fund II N/A N/A N/A N/A N/A
MVC Capital $30.55 million 5.58 $16.32 million $0.65 14.78

MVC Capital has higher revenue and earnings than Blackrock Muniyield Quality Fund II.

Summary

MVC Capital beats Blackrock Muniyield Quality Fund II on 11 of the 12 factors compared between the two stocks.

Blackrock Muniyield Quality Fund II Company Profile

BlackRock MuniYield Quality Fund II, Inc. is a closed ended fixed income mutual fund launched by BlackRock, Inc. It is managed by BlackRock Advisors, LLC. The fund invests in fixed income markets. It primarily invests in municipal debt bonds exempt from federal income taxes. BlackRock MuniYield Quality Fund II, Inc. was formed in September 21, 1992 and is domiciled in United States.

MVC Capital Company Profile

MVC Capital, Inc. is a business development company specializing in equity, acquisition financing, mezzanine financing, management buyouts, leveraged buildups, corporate partnerships, PIPE transactions, going private transactions, private company recapitalizations, operational turnarounds, and growth and expansion capital transaction financing. The company seeks to invest in mature, small, and middle-market companies. It seeks to invest in companies in the consumer products, business services, industrial manufacturing and services, automotive retailing, energy, food and food service, financial services, insurance, industrial distribution and value-added distribution, medical devices and equipment, specialty chemicals, and security sectors. The company prefers to invest in companies based in the United States. The firm typically invests between $3 million and $25 million for control and non-control stakes in companies with revenues between $10 million and $150 million and EBITDA between $3 million and $25 million. It prefers to be the lead investor in transactions and also co-invests in companies with other private equity sponsors. The company invests in the form of preferred and common equity, and warrants or rights to acquire equity interests; bridge loans; term loans; debt; cash flow loans; senior and subordinated loans; convertible securities; venture capital; mezzanine; and private equity investments. It exits its investments in the form of maturity of loan, public offering, sale, mergers and acquisitions, and financial recapitalizations. It prefers to take majority stake in companies.

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