DWS Municipal Income Trust (NYSE:KTF) and Liberty All-Star Equity Fund (NYSE:USA) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.
Institutional & Insider Ownership
11.3% of Liberty All-Star Equity Fund shares are owned by institutional investors. 1.0% of DWS Municipal Income Trust shares are owned by insiders. Comparatively, 0.1% of Liberty All-Star Equity Fund shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations for DWS Municipal Income Trust and Liberty All-Star Equity Fund, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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DWS Municipal Income Trust | 0 | 0 | 0 | 0 | N/A |
Liberty All-Star Equity Fund | 0 | 0 | 1 | 0 | 3.00 |
Liberty All-Star Equity Fund has a consensus price target of $5.70, indicating a potential downside of 28.66%. Given Liberty All-Star Equity Fund's higher possible upside, analysts plainly believe Liberty All-Star Equity Fund is more favorable than DWS Municipal Income Trust.
Risk & Volatility
DWS Municipal Income Trust has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500. Comparatively, Liberty All-Star Equity Fund has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.
Profitability
This table compares DWS Municipal Income Trust and Liberty All-Star Equity Fund's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
DWS Municipal Income Trust | N/A | N/A | N/A |
Liberty All-Star Equity Fund | N/A | N/A | N/A |
Dividends
DWS Municipal Income Trust pays an annual dividend of $0.51 per share and has a dividend yield of 4.3%. Liberty All-Star Equity Fund pays an annual dividend of $0.65 per share and has a dividend yield of 8.1%. DWS Municipal Income Trust has raised its dividend for 1 consecutive years and Liberty All-Star Equity Fund has raised its dividend for 1 consecutive years.
Earnings & Valuation
This table compares DWS Municipal Income Trust and Liberty All-Star Equity Fund's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
DWS Municipal Income Trust | N/A | N/A | N/A | N/A | N/A |
Liberty All-Star Equity Fund | N/A | N/A | N/A | N/A | N/A |
Summary
Liberty All-Star Equity Fund beats DWS Municipal Income Trust on 5 of the 6 factors compared between the two stocks.