Financial Survey: SuRo Capital (NASDAQ:SSSS) vs. The Gabelli Convertible and Income Securities Fund (NYSE:GCV)

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

Insider & Institutional Ownership

13.0% of SuRo Capital shares are held by institutional investors. Comparatively, 23.4% of The Gabelli Convertible and Income Securities Fund shares are held by institutional investors. 6.0% of SuRo Capital shares are held by insiders. Comparatively, 0.7% of The Gabelli Convertible and Income Securities Fund shares are held by 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.

Profitability

This table compares SuRo Capital and The Gabelli Convertible and Income Securities Fund’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SuRo Capital	76.81%	-6.58%	-4.80%
The Gabelli Convertible and Income Securities Fund	N/A	N/A	N/A

Valuation & Earnings

This table compares SuRo Capital and The Gabelli Convertible and Income Securities Fund’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SuRo Capital	$6.60 million	13.30	$5.07 million	$0.21	17.91
The Gabelli Convertible and Income Securities Fund	N/A	N/A	N/A	N/A	N/A

SuRo Capital has higher revenue and earnings than The Gabelli Convertible and Income Securities Fund.

Risk & Volatility

SuRo Capital has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500. Comparatively, The Gabelli Convertible and Income Securities Fund has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for SuRo Capital and The Gabelli Convertible and Income Securities Fund, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SuRo Capital	0	0	2	0	3.00
The Gabelli Convertible and Income Securities Fund	0	0	0	0	N/A

SuRo Capital presently has a consensus price target of $6.00, indicating a potential upside of 59.57%. Given SuRo Capital’s higher probable upside, equities analysts clearly believe SuRo Capital is more favorable than The Gabelli Convertible and Income Securities Fund.

Summary

SuRo Capital beats The Gabelli Convertible and Income Securities Fund on 6 of the 9 factors compared between the two stocks.

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.

About The Gabelli Convertible and Income Securities Fund

The Gabelli Convertible and Income Securities Fund Inc. is a closed-ended balanced mutual fund launched by GAMCO Investors, Inc. The fund is managed by Gabelli Funds, LLC. It invests in public equity and fixed income markets. The fund seeks to invest in stocks of companies operating across diversified sectors. It primarily invests in convertible securities and other debt and equity securities. The fund benchmarks the performance of its portfolio against the Standard & Poor's 500 Index, Barclays Government/Credit Bond Index, and Lipper Convertible Securities Fund Average. It was formerly known as Gabelli Convertible Securities Fund Inc. The Gabelli Convertible and Income Securities Fund Inc. was formed on December 19, 1988 and is domiciled in the United States.