Analyzing Invesco California Value Municipal Income Trust (NYSE:VCV) & SuRo Capital (NASDAQ:SSSS)

Invesco California Value Municipal Income Trust (NYSE:VCV) and SuRo Capital (NASDAQ:SSSS) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Institutional and Insider Ownership

18.8% of Invesco California Value Municipal Income Trust shares are owned by institutional investors. Comparatively, 12.9% of SuRo Capital shares are owned by institutional investors. 6.1% of Invesco California Value Municipal Income Trust shares are owned by company insiders. Comparatively, 6.0% of SuRo Capital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Invesco California Value Municipal Income Trust and SuRo Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invesco California Value Municipal Income Trust	N/A	N/A	N/A
SuRo Capital	-801.00%	-7.28%	-5.10%

Earnings and Valuation

This table compares Invesco California Value Municipal Income Trust and SuRo Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Invesco California Value Municipal Income Trust	$51.29 million	N/A	N/A	N/A	N/A
SuRo Capital	-$33.35 million	-4.20	$5.07 million	($1.89)	-3.14

SuRo Capital has lower revenue, but higher earnings than Invesco California Value Municipal Income Trust.

Volatility and Risk

Invesco California Value Municipal Income Trust has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, SuRo Capital has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500.

Dividends

Invesco California Value Municipal Income Trust pays an annual dividend of $0.69 per share and has a dividend yield of 6.4%. SuRo Capital pays an annual dividend of $0.11 per share and has a dividend yield of 1.9%. SuRo Capital pays out -5.8% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Invesco California Value Municipal Income Trust and SuRo Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invesco California Value Municipal Income Trust	0	0	0	0	0.00
SuRo Capital	0	0	3	0	3.00

SuRo Capital has a consensus target price of $7.00, indicating a potential upside of 18.04%. Given SuRo Capital’s stronger consensus rating and higher possible upside, analysts clearly believe SuRo Capital is more favorable than Invesco California Value Municipal Income Trust.

Summary

Invesco California Value Municipal Income Trust beats SuRo Capital on 7 of the 12 factors compared between the two stocks.

About Invesco California Value Municipal Income Trust

Invesco California Value Municipal Income Trust is a closed-ended fixed income mutual fund launched by Invesco Ltd. The fund is co-managed by Invesco Advisers, Inc., Invesco Asset Management (Japan) Limited, Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Canada Ltd., Invesco Hong Kong Limited, and Invesco Senior Secured Management, Inc. It invests in the fixed income markets of the United States. The fund primarily invests in investment grade California municipal securities which include municipal bonds, municipal notes, municipal commercial paper, and lease obligations. It employs fundamental analysis with bottom-up security selection approach to create its portfolio. The fund was formerly known as Invesco Van Kampen California Value Municipal Income Trust. Invesco California Value Municipal Income Trust was formed on April 30, 1993 and is domiciled in the United States.

About SuRo Capital

SuRo Capital Corp. is a business development company. The firm seeks to invest in growth capital, late stage and venture capital-backed private companies. SuRo Capital Corp. was founded in 2010 and is based in San Francisco, California with additional office in New York, New York.