Comparison of Wells Fargo Advantage Multi-Sector Income Fund (ERC) and PennantPark Floating Rate Capital Ltd. (NASDAQ:PFLT)

This is therefore a contrasting of the institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation in Wells Fargo Advantage Multi-Sector Income Fund (NYSEAMERICAN:ERC) and PennantPark Floating Rate Capital Ltd. (NASDAQ:PFLT). The two are both Asset Management companies that compete with one another.

Valuation & Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wells Fargo Advantage Multi-Sector Income Fund 38.01M 10.01 N/A -0.01 0.00
PennantPark Floating Rate Capital Ltd. 80.55M 6.21 36.57M 0.94 13.69

Table 1 shows the top-line revenue, earnings per share (EPS) and valuation for Wells Fargo Advantage Multi-Sector Income Fund and PennantPark Floating Rate Capital Ltd.

Profitability

Table 2 hightlights the net margins, return on equity and return on assets of the two companies.

Net Margins Return on Equity Return on Assets
Wells Fargo Advantage Multi-Sector Income Fund 0.00% 0% 0%
PennantPark Floating Rate Capital Ltd. 45.40% 0% 0%

Dividends

Wells Fargo Advantage Multi-Sector Income Fund pays out $1.29 per share annually while its annual dividend yield is 10.64%. PennantPark Floating Rate Capital Ltd. offers an annual dividend of $1.14 per share, bundled with 8.84% dividend yield.

Analyst Ratings

Wells Fargo Advantage Multi-Sector Income Fund and PennantPark Floating Rate Capital Ltd. Recommendations and Ratings are available in the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Wells Fargo Advantage Multi-Sector Income Fund 0 0 0 0.00
PennantPark Floating Rate Capital Ltd. 0 0 1 3.00

On the other hand, PennantPark Floating Rate Capital Ltd.’s potential upside is 8.44% and its consensus target price is $14.

Insider & Institutional Ownership

The shares of both Wells Fargo Advantage Multi-Sector Income Fund and PennantPark Floating Rate Capital Ltd. are owned by institutional investors at 0% and 37.82% respectively. Insiders owned roughly 17.42% of Wells Fargo Advantage Multi-Sector Income Fund’s shares. Competitively, insiders own roughly 0.98% of PennantPark Floating Rate Capital Ltd.’s shares.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Wells Fargo Advantage Multi-Sector Income Fund 0.66% 1.67% 6.17% -2.55% -5.71% 10.1%
PennantPark Floating Rate Capital Ltd. -3.44% -0.26% 1.3% -4.54% 4.3% 11.84%

For the past year Wells Fargo Advantage Multi-Sector Income Fund was less bullish than PennantPark Floating Rate Capital Ltd.

Summary

PennantPark Floating Rate Capital Ltd. beats Wells Fargo Advantage Multi-Sector Income Fund on 7 of the 10 factors.

PennantPark Floating Rate Capital Ltd. is a business development company. It seeks to make secondary direct, debt, equity, and loan investments. The fund seeks to invest through floating rate loans in private or thinly traded or small market-cap, public middle market companies. It primarily invests in the United States and to a limited extent non-U.S. companies. The fund typically invests between $2 million and $20 million. The fund also invests in equity securities, such as preferred stock, common stock, warrants or options received in connection with debt investments or through direct investments. It primarily invests between $10 million and $50 million in investments in senior secured loans and mezzanine debt. It seeks to invest in companies not rated by national rating agencies. The companies if rated would be between BB and CCC under the Standard & Poor's system. The fund invests 30% is invested in non-qualifying assets like investments in public companies whose securities are not thinly traded or do not have a market capitalization of less than $250 million, securities of middle-market companies located outside of the United States, high-yield bonds, distressed debt, private equity, securities of public companies that are not thinly traded, and investment companies as defined in the 1940 Act. Under normal conditions, the fund expects atleast 80 percent of its net assets plus any borrowings for investment purposes to be invested in Floating Rate Loans and investments with similar economic characteristics, including cash equivalents invested in money market funds. It expects to represent 65 percent of its portfolio through senior secured loans. In case of floating rate loans, it holds investments for a period of three to ten years.