Comparing BNY Mellon Strategic Municipal Bond Fund (NYSE:DSM) and SuRo Capital (NASDAQ:SSSS)

SuRo Capital (NASDAQ:SSSS) and BNY Mellon Strategic Municipal Bond Fund (NYSE:DSM) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.

Earnings and Valuation

This table compares SuRo Capital and BNY Mellon Strategic Municipal Bond Fund”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SuRo Capital	-$33.35 million	-4.03	$5.07 million	($1.89)	-3.04
BNY Mellon Strategic Municipal Bond Fund	N/A	N/A	N/A	N/A	N/A

SuRo Capital has higher earnings, but lower revenue than BNY Mellon Strategic Municipal Bond Fund.

Analyst Ratings

This is a breakdown of current ratings and price targets for SuRo Capital and BNY Mellon Strategic Municipal Bond Fund, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SuRo Capital	0	0	2	0	3.00
BNY Mellon Strategic Municipal Bond Fund	0	0	0	0	0.00

SuRo Capital currently has a consensus target price of $6.00, indicating a potential upside of 4.35%. Given SuRo Capital’s stronger consensus rating and higher probable upside, equities analysts clearly believe SuRo Capital is more favorable than BNY Mellon Strategic Municipal Bond Fund.

Risk and Volatility

SuRo Capital has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, BNY Mellon Strategic Municipal Bond Fund has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Profitability

This table compares SuRo Capital and BNY Mellon Strategic Municipal Bond Fund’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SuRo Capital	-801.00%	-7.28%	-5.10%
BNY Mellon Strategic Municipal Bond Fund	N/A	N/A	N/A

Dividends

SuRo Capital pays an annual dividend of $0.11 per share and has a dividend yield of 1.9%. BNY Mellon Strategic Municipal Bond Fund pays an annual dividend of $0.20 per share and has a dividend yield of 3.4%. SuRo Capital pays out -5.8% of its earnings in the form of a dividend.

Institutional & Insider Ownership

12.9% of SuRo Capital shares are owned by institutional investors. 6.0% of SuRo Capital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

SuRo Capital beats BNY Mellon Strategic Municipal Bond Fund on 7 of the 12 factors compared between the two stocks.

About SuRo Capital

SuRo Capital Corp. is a business development company. The firm seeks to invest in growth capital, late stage and venture capital-backed private companies. SuRo Capital Corp. was founded in 2010 and is based in San Francisco, California with additional office in New York, New York.

About BNY Mellon Strategic Municipal Bond Fund

BNY Mellon Strategic Municipal Bond Fund, Inc. is a closed ended fixed income mutual fund launched and managed by BNY Mellon Investment Adviser, Inc. The fund invests in the fixed income markets of the United States. It primarily invests in investment grade municipal bonds which are exempt from federal income tax. The fund seeks to maintain a weighted average maturity of greater than 10 years. It was formerly known as Dreyfus Strategic Municipal Bond Fund, Inc. BNY Mellon Strategic Municipal Bond Fund, Inc. was formed on November 22, 1989 and is domiciled in the United States.