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BLW vs ECC

BLW
BlackRock Limited Duration Income Trust
BEARISH
Price
$13.77
Market Cap
$533.4M
Sector
Financial Services
AI Confidence
68%
ECC
Eagle Point Credit Company Inc.
BEARISH
Price
$4.02
Market Cap
$531.5M
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
BLW
9.91
ECC
--
Forward P/E
BLW
--
ECC
4.3
P/B Ratio
BLW
0.98
ECC
0.71
P/S Ratio
BLW
8.52
ECC
2.61
EV/EBITDA
BLW
--
ECC
--

Profitability

Gross Margin
BLW
100.0%
ECC
100.0%
Operating Margin
BLW
91.48%
ECC
73.64%
Profit Margin
BLW
81.91%
ECC
-56.38%
ROE
BLW
9.88%
ECC
-11.24%
ROA
BLW
4.0%
ECC
6.45%

Growth

Revenue Growth
BLW
-3.4%
ECC
3.3%
Earnings Growth
BLW
26.0%
ECC
--

Financial Health

Debt/Equity
BLW
0.62
ECC
0.4
Current Ratio
BLW
0.07
ECC
4.4
Quick Ratio
BLW
0.06
ECC
4.07

Dividends

Dividend Yield
BLW
9.86%
ECC
35.82%
Payout Ratio
BLW
97.73%
ECC
928.91%

AI Verdict

BLW BEARISH

The Advanced Deterministic Scorecard reveals a Piotroski F-Score of 5/9, indicating stable but not strong financial health, while the absence of an Altman Z-Score prevents a full distress risk assessment. Despite a high dividend yield of 9.86%, the payout ratio is alarmingly high at 97.73%, threatening sustainability. Profitability metrics are strong on paper with a 91.48% operating margin and 81.91% profit margin, but these are offset by weak liquidity (Current Ratio: 0.07) and negative revenue growth. The stock trades below its Graham Number of $20.91 and intrinsic value estimate of $41.0, suggesting potential undervaluation, but structural risks and poor technical trend (0/100) undermine this advantage.

Strengths
High profitability with operating margin of 91.48% and net margin of 81.91%
Low P/E ratio of 9.91 compared to sector average of 30.45, indicating potential undervaluation
Strong ROE of 9.88% in a sector where average ROE is negative (-9.78%)
Risks
Extremely weak liquidity with Current Ratio of 0.07 and Quick Ratio of 0.06, indicating near-term solvency concerns
Revenue declining YoY by -3.40%, suggesting underlying business contraction
Payout ratio of 97.73% jeopardizes dividend sustainability
ECC BEARISH

ECC presents a classic 'value trap' scenario, characterized by a stable Piotroski F-Score of 4/9 but severe technical deterioration. While the stock trades at a significant discount to book value (P/B 0.71) and analysts maintain a bullish target of $8.56, the fundamental dividend profile is unsustainable with a payout ratio of 928.91%. The combination of a 0/100 technical trend and a 32.2% one-year price decline suggests the market is pricing in significant credit risk or a dividend cut. Despite strong liquidity ratios, the negative ROE and crashing price action outweigh the low valuation metrics.

Strengths
Significant discount to book value (P/B 0.71)
Strong short-term liquidity (Current Ratio 4.40)
Low Debt/Equity ratio (0.40) relative to sector average
Risks
Mathematically unsustainable dividend payout ratio (928.91%)
Severe bearish technical trend (0/100 score)
Negative Return on Equity (ROE: -11.24%)

Compare Another Pair

BLW vs ECC: Head-to-Head Comparison

This page compares BlackRock Limited Duration Income Trust (BLW) and Eagle Point Credit Company Inc. (ECC) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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