Head to Head Review: Mfs Govt Mkts (NYSE:MGF) and Equus Total Return (NYSE:EQS)

Equus Total Return (NYSE:EQS) and Mfs Govt Mkts (NYSE:MGF) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Profitability

This table compares Equus Total Return and Mfs Govt Mkts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equus Total Return	-1,081.99%	-12.03%	-11.09%
Mfs Govt Mkts	N/A	N/A	N/A

Insider & Institutional Ownership

54.8% of Mfs Govt Mkts shares are held by institutional investors. 29.9% of Equus Total Return shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Equus Total Return and Mfs Govt Mkts, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equus Total Return	1	0	0	0	1.00
Mfs Govt Mkts	0	0	0	0	0.00

Earnings and Valuation

This table compares Equus Total Return and Mfs Govt Mkts”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equus Total Return	-$10.25 million	-1.90	-$18.78 million	($1.14)	-1.22
Mfs Govt Mkts	N/A	N/A	N/A	N/A	N/A

Mfs Govt Mkts has higher revenue and earnings than Equus Total Return.

Volatility & Risk

Equus Total Return has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Mfs Govt Mkts has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.

Summary

Mfs Govt Mkts beats Equus Total Return on 5 of the 8 factors compared between the two stocks.

About Equus Total Return

Equus Total Return, Inc. is a business development company (BDC) specializing in leveraged buyouts, management buyouts, corporate partnerships/joint ventures, growth and expansion capital, acquisition financing, roll-up acquisition strategies, operational turnarounds, recapitalizations of existing businesses, special situations, equity and equity-oriented securities issued by privately owned companies, debt securities including subordinate debt, debt convertible into common or preferred stock, or debt combined with warrants and common and preferred stock, and preferred equity financing. It invests in small to mid-sized companies and acts as a lead investor. It invests in technology, telecommunication, financial services, natural resource and industrial manufacturing and services. It invests in companies engaged in the alternative energy, real estate, healthcare, education, e-learning, leisure and entertainment, and foreign investment sector in the United States, China, India, and Europe. It investments include common and preferred stock, debt convertible into common or preferred stock, debt combined with warrants and options, and other rights to acquire common or preferred stock. It seeks to invest in companies between $1 million to $25 million with revenues between $5 million and $150 million with EBITDA between $2 million to $50 million. It seeks to take control and non-control equity positions. Equus Total Return, Inc. was founded in 1991 and is based in Houston, Texas with additional office in Vancouver, Canada.

About Mfs Govt Mkts

MFS Government Markets Income Trust is a close ended fixed income mutual fund launched and managed by Massachusetts Financial Services Company. The fund invests in the fixed income markets of United States. It primarily invests in investment grade debt instruments. The fund also invests in mortgage backed, U.S. government agencies, international sovereigns, U.S. treasuries, cash and other net assets, emerging markets debt, high grade corporates, and residential mortgage backed securities. It benchmarks the performance of its portfolio against the Barclays U.S. Government/Mortgage Bond Index. MFS Government Markets Income Trust was formed in May 28, 1987 and is domiciled in the United States.