XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE:XFLT) and RiverNorth Capital and Income Fund (NYSE:RSF) Critical Survey

XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE:XFLT) and RiverNorth Capital and Income Fund (NYSE:RSF) are both miscellaneous companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.

Profitability

This table compares XAI Octagon Floating Rate & Alternative Income Term Trust and RiverNorth Capital and Income Fund’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XAI Octagon Floating Rate & Alternative Income Term Trust	N/A	N/A	N/A
RiverNorth Capital and Income Fund	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and target prices for XAI Octagon Floating Rate & Alternative Income Term Trust and RiverNorth Capital and Income Fund, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XAI Octagon Floating Rate & Alternative Income Term Trust	0	0	1	0	3.00
RiverNorth Capital and Income Fund	0	0	0	0	N/A

XAI Octagon Floating Rate & Alternative Income Term Trust presently has a consensus target price of $8.00, suggesting a potential upside of 13.80%. Given XAI Octagon Floating Rate & Alternative Income Term Trust’s higher probable upside, equities analysts clearly believe XAI Octagon Floating Rate & Alternative Income Term Trust is more favorable than RiverNorth Capital and Income Fund.

Dividends

XAI Octagon Floating Rate & Alternative Income Term Trust pays an annual dividend of $1.02 per share and has a dividend yield of 14.5%. RiverNorth Capital and Income Fund pays an annual dividend of $1.73 per share and has a dividend yield of 11.2%. XAI Octagon Floating Rate & Alternative Income Term Trust pays out 117.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. RiverNorth Capital and Income Fund pays out 115.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. XAI Octagon Floating Rate & Alternative Income Term Trust has increased its dividend for 1 consecutive years. XAI Octagon Floating Rate & Alternative Income Term Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares XAI Octagon Floating Rate & Alternative Income Term Trust and RiverNorth Capital and Income Fund’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XAI Octagon Floating Rate & Alternative Income Term Trust	-$8.68 million	N/A	N/A	$0.87	8.08
RiverNorth Capital and Income Fund	$7.66 million	N/A	N/A	$1.50	10.32

XAI Octagon Floating Rate & Alternative Income Term Trust is trading at a lower price-to-earnings ratio than RiverNorth Capital and Income Fund, indicating that it is currently the more affordable of the two stocks.

About XAI Octagon Floating Rate & Alternative Income Term Trust

XAI Octagon Floating Rate & Alternative Income Term Trust invests in a dynamically managed portfolio of floating-rate credit instruments and other structured credit investments within the private markets. Under normal market conditions, the Trust will invest at least 80% of managed assets in senior secured loans, CLO debt and CLO equity.

The Trust seeks attractive total return with an emphasis on income generation across multiple stages of the credit cycle. There can be no assurance that the Trust will achieve its investment objective, and you could lose some or all of your investment.

About RiverNorth Capital and Income Fund

RiverNorth Specialty Finance Corporation’s ISS Governance QualityScore as of N/A is N/A. The pillar scores are Audit: N/A; Board: N/A; Shareholder Rights: N/A; Compensation: N/A.