Comparing SuRo Capital (NASDAQ:SSSS) & PCM Fund (NYSE:PCM)

PCM Fund (NYSE:PCM) and SuRo Capital (NASDAQ:SSSS) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and price targets for PCM Fund and SuRo Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PCM Fund	0	0	0	0	0.00
SuRo Capital	0	0	2	0	3.00

SuRo Capital has a consensus target price of $6.00, indicating a potential upside of 4.53%. Given SuRo Capital’s stronger consensus rating and higher probable upside, analysts plainly believe SuRo Capital is more favorable than PCM Fund.

Profitability

This table compares PCM Fund and SuRo Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PCM Fund	N/A	N/A	N/A
SuRo Capital	-801.00%	-7.28%	-5.10%

Insider and Institutional Ownership

10.3% of PCM Fund shares are held by institutional investors. Comparatively, 12.9% of SuRo Capital shares are held by institutional investors. 1.0% of PCM Fund shares are held by company insiders. Comparatively, 6.0% of SuRo Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

PCM Fund pays an annual dividend of $0.96 per share and has a dividend yield of 14.1%. 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.

Earnings and Valuation

This table compares PCM Fund and SuRo Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PCM Fund	$5.49 million	14.94	N/A	N/A	N/A
SuRo Capital	-$33.35 million	-4.02	$5.07 million	($1.89)	-3.04

SuRo Capital has lower revenue, but higher earnings than PCM Fund.

Risk and Volatility

PCM Fund has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, SuRo Capital has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500.

Summary

SuRo Capital beats PCM Fund on 7 of the 13 factors compared between the two stocks.

About PCM Fund

PCM Fund Inc. is a closed ended fixed income mutual fund launched and managed by Allianz Global Investors Fund Management LLC. The fund is co-managed by Pacific Investment Management Company LLC. It seeks to invest in fixed income markets. The fund invests primarily in commercial mortgage-backed securities. It employs fundamental analysis with a focus on top down stock picking approach to create its portfolio. The fund benchmarks the performance of its portfolio against Barclay’s CMBS Investment Grade Index. PCM Fund Inc was formed on September 2, 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.