Critical Survey: SLR Investment (NASDAQ:SLRC) vs. Templeton Global Income Fund (NYSE:GIM)

SLR Investment (NASDAQ:SLRC – Get Rating) and Templeton Global Income Fund (NYSE:GIM – Get Rating) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for SLR Investment and Templeton Global Income Fund, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SLR Investment	1	3	2	0	2.17
Templeton Global Income Fund	0	0	0	0	N/A

SLR Investment currently has a consensus price target of $16.04, indicating a potential upside of 8.57%. Given SLR Investment’s higher possible upside, analysts clearly believe SLR Investment is more favorable than Templeton Global Income Fund.

Risk & Volatility

SLR Investment has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Templeton Global Income Fund has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.

Valuation and Earnings

This table compares SLR Investment and Templeton Global Income Fund’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SLR Investment	$177.51 million	4.54	$18.34 million	$0.36	41.03
Templeton Global Income Fund	N/A	N/A	N/A	N/A	N/A

SLR Investment has higher revenue and earnings than Templeton Global Income Fund.

Profitability

This table compares SLR Investment and Templeton Global Income Fund’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SLR Investment	10.33%	8.05%	3.22%
Templeton Global Income Fund	N/A	N/A	N/A

Dividends

SLR Investment pays an annual dividend of $1.64 per share and has a dividend yield of 11.1%. Templeton Global Income Fund pays an annual dividend of $0.39 per share and has a dividend yield of 9.5%. SLR Investment pays out 455.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

33.9% of SLR Investment shares are held by institutional investors. Comparatively, 62.0% of Templeton Global Income Fund shares are held by institutional investors. 7.4% of SLR Investment shares are held by insiders. Comparatively, 6.2% of Templeton Global Income Fund shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

SLR Investment beats Templeton Global Income Fund on 9 of the 11 factors compared between the two stocks.

About SLR Investment

(Get Rating)

SLR Investment Corp. is a closed-end investment company. It provides financing for equity, debt and senior secured loans for working capital, acquisition, refinancing and growth capital requirements. It makes control investments.

About Templeton Global Income Fund

(Get Rating)

Templeton Global Income Fund is a closed-ended fixed income mutual fund launched by Franklin Resources, Inc. It is managed by Franklin Advisers, Inc. The fund invests in fixed income markets across the globe. It primarily invests in government bonds. The fund is actively managed. It benchmarks the performance of its portfolio against the J.P. Morgan Global Government Bond Index. Templeton Global Income Fund was formed on March 17, 1988 and is domiciled in the United States.