Corporate Capital Trust (NYSE: CCT) and Eagle Point Credit (NYSE:ECC) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.
Institutional & Insider Ownership
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13.3% of Corporate Capital Trust shares are owned by institutional investors. Comparatively, 57.4% of Eagle Point Credit shares are owned by institutional investors. 0.5% of Eagle Point Credit shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Corporate Capital Trust pays an annual dividend of $1.61 per share and has a dividend yield of 9.7%. Eagle Point Credit pays an annual dividend of $2.40 per share and has a dividend yield of 13.2%. Corporate Capital Trust pays out 104.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Eagle Point Credit pays out 127.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Corporate Capital Trust and Eagle Point Credit’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Corporate Capital Trust||43.78%||8.14%||5.07%|
|Eagle Point Credit||47.68%||10.46%||7.06%|
This is a breakdown of current recommendations and price targets for Corporate Capital Trust and Eagle Point Credit, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Corporate Capital Trust||0||0||2||0||3.00|
|Eagle Point Credit||0||0||4||0||3.00|
Corporate Capital Trust presently has a consensus price target of $20.50, suggesting a potential upside of 23.42%. Eagle Point Credit has a consensus price target of $21.13, suggesting a potential upside of 16.33%. Given Corporate Capital Trust’s higher possible upside, analysts plainly believe Corporate Capital Trust is more favorable than Eagle Point Credit.
Valuation & Earnings
This table compares Corporate Capital Trust and Eagle Point Credit’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Corporate Capital Trust||$397.71 million||5.30||$174.13 million||$1.54||10.79|
|Eagle Point Credit||$65.29 million||5.23||$31.13 million||$1.88||9.66|
Corporate Capital Trust has higher revenue and earnings than Eagle Point Credit. Eagle Point Credit is trading at a lower price-to-earnings ratio than Corporate Capital Trust, indicating that it is currently the more affordable of the two stocks.
Eagle Point Credit beats Corporate Capital Trust on 8 of the 14 factors compared between the two stocks.
Corporate Capital Trust Company Profile
Corporate Capital Trust Inc is headquartered in Orlando, Florida, United States and is engaged in the financial intermediation activities. The company offers Trust. The company was founded in 2010.
Eagle Point Credit Company Profile
Eagle Point Credit Company Inc. is a closed ended fund launched and managed by Eagle Point Credit Management LLC. It invests in fixed income markets of the United States. The fund invests equity and junior debt tranches of collateralized loan obligations consisting primarily of below investment grade U.S. senior secured loans. Eagle Point Credit Company Inc. was formed on March 24, 2014 and is domiciled in the United States.