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FCT vs FUNC

FCT
First Trust Senior Floating Rate Income Fund II
NEUTRAL
Price
$9.79
Market Cap
$254.4M
Sector
Financial Services
AI Confidence
85%
FUNC
First United Corporation
NEUTRAL
Price
$39.11
Market Cap
$254.3M
Sector
Financial Services
AI Confidence
80%

Valuation

P/E Ratio
FCT
15.06
FUNC
10.37
Forward P/E
FCT
--
FUNC
8.32
P/B Ratio
FCT
0.95
FUNC
1.25
P/S Ratio
FCT
9.88
FUNC
2.96
EV/EBITDA
FCT
--
FUNC
--

Profitability

Gross Margin
FCT
100.0%
FUNC
0.0%
Operating Margin
FCT
87.83%
FUNC
43.43%
Profit Margin
FCT
65.53%
FUNC
28.53%
ROE
FCT
6.12%
FUNC
12.8%
ROA
FCT
4.25%
FUNC
1.21%

Growth

Revenue Growth
FCT
-2.6%
FUNC
11.3%
Earnings Growth
FCT
-15.5%
FUNC
-7.0%

Financial Health

Debt/Equity
FCT
0.15
FUNC
--
Current Ratio
FCT
0.14
FUNC
--
Quick Ratio
FCT
0.14
FUNC
--

Dividends

Dividend Yield
FCT
11.89%
FUNC
2.65%
Payout Ratio
FCT
179.08%
FUNC
24.4%

AI Verdict

FCT NEUTRAL

FCT presents a complex profile with a stable Piotroski F-Score of 6/9, but significant fundamental contradictions. While the Graham Number ($12.31) and a Price/Book ratio of 0.95 suggest the fund is undervalued, the intrinsic value ($4.55) and a critical payout ratio of 179.08% indicate a potential yield trap. Earnings are declining sharply (-15.5% YoY), and the technical trend is currently bearish (0/100), offsetting the appeal of the 11.89% dividend yield.

Strengths
Trading below book value (P/B 0.95)
Very low Debt/Equity ratio (0.15)
Strong profit margins (65.53%)
Risks
Unsustainable dividend payout ratio (179.08%)
Significant earnings contraction (-15.50% YoY)
Bearish technical trend (0/100)
FUNC NEUTRAL

FUNC presents a conflicting profile characterized by a weak Piotroski F-Score of 3/9, indicating deteriorating fundamental health, contrasted against an attractive valuation below its Graham Number of $51.55. While the company has a strong track record of earnings beats and impressive long-term price appreciation, current YoY earnings growth is negative (-7.00%) despite revenue growth. The technical trend is heavily bearish (10/100), suggesting significant short-term momentum risk despite the low P/E ratio. Overall, the stock is a value play with concerning operational health signals.

Strengths
Attractive valuation with a P/E of 10.37 and current price below Graham Number
Strong historical price performance (176% 5-year change)
Consistent earnings beat record (3 of last 4 quarters)
Risks
Weak fundamental health as indicated by a Piotroski F-Score of 3/9
Negative YoY earnings growth (-7.00%) suggesting margin compression
Severely bearish technical trend (10/100)

Compare Another Pair

FCT vs FUNC: Head-to-Head Comparison

This page compares First Trust Senior Floating Rate Income Fund II (FCT) and First United Corporation (FUNC) 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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