General American Investors (NYSE:GAM) and Duff & Phelps Utility and Corporate Bond Trust (NYSE:DUC) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.
Institutional and Insider Ownership
23.0% of General American Investors shares are held by institutional investors. 8.2% of General American Investors shares are held by company insiders. Comparatively, 0.1% of Duff & Phelps Utility and Corporate Bond Trust shares are held 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.
Earnings and Valuation
This table compares General American Investors and Duff & Phelps Utility and Corporate Bond Trust's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
General American Investors | N/A | N/A | N/A | N/A | N/A |
Duff & Phelps Utility and Corporate Bond Trust | N/A | N/A | N/A | N/A | N/A |
Risk and Volatility
General American Investors has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Duff & Phelps Utility and Corporate Bond Trust has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500.
Profitability
This table compares General American Investors and Duff & Phelps Utility and Corporate Bond Trust's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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General American Investors | N/A | N/A | N/A |
Duff & Phelps Utility and Corporate Bond Trust | N/A | N/A | N/A |
Dividends
General American Investors pays an annual dividend of $0.23 per share and has a dividend yield of 0.6%. Duff & Phelps Utility and Corporate Bond Trust pays an annual dividend of $0.55 per share and has a dividend yield of 5.6%. Duff & Phelps Utility and Corporate Bond Trust has raised its dividend for 1 consecutive years. Duff & Phelps Utility and Corporate Bond Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a summary of current recommendations for General American Investors and Duff & Phelps Utility and Corporate Bond Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
General American Investors | 0 | 0 | 0 | 0 | N/A |
Duff & Phelps Utility and Corporate Bond Trust | 0 | 0 | 0 | 0 | N/A |
Summary
General American Investors beats Duff & Phelps Utility and Corporate Bond Trust on 3 of the 5 factors compared between the two stocks.