The Bank of New York Mellon (NYSE:BK) and BlackRock Capital Investment (NASDAQ:BKCC) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.
Profitability
This table compares The Bank of New York Mellon and BlackRock Capital Investment's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| The Bank of New York Mellon | 23.09% | 9.89% | 0.89% |
| BlackRock Capital Investment | -160.86% | 10.19% | 5.32% |
Dividends
The Bank of New York Mellon pays an annual dividend of $1.24 per share and has a dividend yield of 2.4%. BlackRock Capital Investment pays an annual dividend of $0.40 per share and has a dividend yield of 10.3%. The Bank of New York Mellon pays out 30.8% of its earnings in the form of a dividend. BlackRock Capital Investment pays out 67.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. The Bank of New York Mellon has increased its dividend for 1 consecutive years and BlackRock Capital Investment has increased its dividend for 1 consecutive years.
Risk and Volatility
The Bank of New York Mellon has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, BlackRock Capital Investment has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500.
Earnings & Valuation
This table compares The Bank of New York Mellon and BlackRock Capital Investment's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| The Bank of New York Mellon | $20.77 billion | 2.18 | $4.44 billion | $4.02 | 12.88 |
| BlackRock Capital Investment | $78.12 million | 3.69 | $-6,890,000.00 | $0.59 | 6.59 |
The Bank of New York Mellon has higher revenue and earnings than BlackRock Capital Investment. BlackRock Capital Investment is trading at a lower price-to-earnings ratio than The Bank of New York Mellon, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for The Bank of New York Mellon and BlackRock Capital Investment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| The Bank of New York Mellon | 0 | 5 | 10 | 0 | 2.67 |
| BlackRock Capital Investment | 0 | 0 | 0 | 0 | N/A |
The Bank of New York Mellon presently has a consensus price target of $49.80, suggesting a potential downside of 3.82%. Given The Bank of New York Mellon's higher possible upside, research analysts plainly believe The Bank of New York Mellon is more favorable than BlackRock Capital Investment.
Insider and Institutional Ownership
82.3% of The Bank of New York Mellon shares are held by institutional investors. Comparatively, 29.2% of BlackRock Capital Investment shares are held by institutional investors. 0.1% of The Bank of New York Mellon shares are held by company insiders. Comparatively, 1.6% of BlackRock Capital Investment 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.
Summary
The Bank of New York Mellon beats BlackRock Capital Investment on 9 of the 15 factors compared between the two stocks.
