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FRA vs LEO

FRA
BlackRock Floating Rate Income Strategies Fund, Inc.
NEUTRAL
Price
$11.11
Market Cap
$393.7M
Sector
Financial Services
AI Confidence
85%
LEO
BNY Mellon Strategic Municipals, Inc.
BEARISH
Price
$6.32
Market Cap
$393.7M
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
FRA
15.87
LEO
--
Forward P/E
FRA
--
LEO
--
P/B Ratio
FRA
0.86
LEO
0.93
P/S Ratio
FRA
9.01
LEO
13.14
EV/EBITDA
FRA
--
LEO
--

Profitability

Gross Margin
FRA
100.0%
LEO
100.0%
Operating Margin
FRA
82.7%
LEO
87.83%
Profit Margin
FRA
55.85%
LEO
-43.7%
ROE
FRA
5.52%
LEO
-2.99%
ROA
FRA
4.17%
LEO
2.48%

Growth

Revenue Growth
FRA
--
LEO
3.5%
Earnings Growth
FRA
--
LEO
-67.4%

Financial Health

Debt/Equity
FRA
0.43
LEO
0.33
Current Ratio
FRA
0.33
LEO
0.06
Quick Ratio
FRA
0.32
LEO
0.06

Dividends

Dividend Yield
FRA
13.38%
LEO
4.45%
Payout Ratio
FRA
212.3%
LEO
626.82%

AI Verdict

FRA NEUTRAL

FRA presents a complex profile with a stable Piotroski F-Score of 6/9 and a Graham Number of $14.29 suggesting defensive value, yet it is countered by a bearish technical trend (0/100) and a low growth-based intrinsic value of $4.90. While the fund trades at a discount to book value (P/B 0.86) and maintains strong operating margins, the dividend profile is highly concerning. The payout ratio of 212.30% indicates that the current 13.38% yield is unsustainable and likely being funded by capital returns rather than earnings. Overall, the asset is a value play with significant income-stability risks.

Strengths
Trading below book value (P/B 0.86)
Strong operating margins (82.70%)
Stable financial health per Piotroski F-Score (6/9)
Risks
Unsustainable payout ratio (212.30%)
Strongly bearish technical trend (0/100)
Current price significantly exceeds growth-based intrinsic value ($4.90)
LEO BEARISH

LEO presents a precarious financial profile, anchored by a stable but mediocre Piotroski F-Score of 4/9. While the stock trades slightly below book value (P/B 0.93), this is overshadowed by a catastrophic earnings collapse of -67.4% and a completely unsustainable dividend payout ratio of 626.82%. The combination of negative profit margins and a 0/100 technical trend suggests that recent price gains are disconnected from fundamental deterioration.

Strengths
Trading at a discount to book value (P/B 0.93)
Low Debt/Equity ratio (0.33) relative to sector average
Positive Return on Assets (ROA 2.48%)
Risks
Unsustainable dividend payout ratio (626.82%)
Severe earnings contraction (-67.4% YoY)
Deeply negative profit margins (-43.70%)

Compare Another Pair

FRA vs LEO: Head-to-Head Comparison

This page compares BlackRock Floating Rate Income Strategies Fund, Inc. (FRA) and BNY Mellon Strategic Municipals, Inc. (LEO) 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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