Contrasting Eagle Point Credit (NYSE:ECC) & Andritz (OTCMKTS:ADRZY)

Eagle Point Credit (NYSE:ECCGet Rating) and Andritz (OTCMKTS:ADRZYGet Rating) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, risk, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for Eagle Point Credit and Andritz, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eagle Point Credit 0 0 1 0 3.00
Andritz 0 0 5 0 3.00

Andritz has a consensus price target of $56.00, indicating a potential upside of 562.13%. Given Andritz’s higher probable upside, analysts plainly believe Andritz is more favorable than Eagle Point Credit.

Profitability

This table compares Eagle Point Credit and Andritz’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eagle Point Credit 148.80% N/A N/A
Andritz 5.02% 23.57% 4.50%

Institutional & Insider Ownership

21.6% of Eagle Point Credit shares are owned by institutional investors. 0.4% of Eagle Point Credit shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Eagle Point Credit and Andritz’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eagle Point Credit $88.51 million 5.78 $131.71 million $3.94 3.14
Andritz $7.65 billion 0.58 $385.10 million $0.78 10.84

Andritz has higher revenue and earnings than Eagle Point Credit. Eagle Point Credit is trading at a lower price-to-earnings ratio than Andritz, indicating that it is currently the more affordable of the two stocks.

Dividends

Eagle Point Credit pays an annual dividend of $1.38 per share and has a dividend yield of 11.1%. Andritz pays an annual dividend of $0.23 per share and has a dividend yield of 2.7%. Eagle Point Credit pays out 35.0% of its earnings in the form of a dividend. Andritz pays out 29.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Eagle Point Credit has raised its dividend for 2 consecutive years. Eagle Point Credit is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Eagle Point Credit has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Andritz has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

About Eagle Point Credit (Get Rating)

Eagle Point Credit Company Inc. is a closed ended fund launched and managed by Eagle Point Credit Management LLC. It invests in fixed income markets of the United States. The fund invests equity and junior debt tranches of collateralized loan obligations consisting primarily of below investment grade U.S. senior secured loans. Eagle Point Credit Company Inc. was formed on March 24, 2014 and is domiciled in the United States.

About Andritz (Get Rating)

Andritz AG provides plants, equipment, and services for pulp and paper industry, metalworking and steel industries, hydropower stations, and solid/liquid separation in the municipal and industrial sectors. It operates through four segments: Pulp & Paper, Metals, Hydro, and Separation. The Pulp & Paper segment supplies technology, automation, and service solutions to produce pulp, paper, board, and tissue; boilers for power generation; flue gas cleaning systems; plants to produce nonwovens and panelboards; and recycling and shredding solutions for various waste materials. The Metals segment provides technologies, plants, and digital solutions, including automation and software solutions, and process know-how and services; and solutions for the production and processing of flat products and welding systems, as well as services for the metals processing industry. The Hydro segment supplies electromechanical equipment and services for hydropower plants; and pumps for irrigation, water supply, and flood control, as well as offers turbo generators. The Separation segment offers mechanical and thermal technologies, as well as services and related automation solutions for solid/liquid separation to serve chemical, environmental, food, mining, and minerals industries; and technologies and services for the production of animal feed and biomass pellets. In addition, it serves to carbon steel, stainless steel, aluminum, and solution for automotive industries. It operates primarily in Europe, North America, South America, and China and rest of Asia. The company was founded in 1852 and is headquartered in Graz, Austria.

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