Head to Head Comparison: MFS Municipal Income Trust (NYSE:MFM) vs. VanEck Biotech ETF (NASDAQ:BBH)

VanEck Biotech ETF (NASDAQ:BBH) and MFS Municipal Income Trust (NYSE:MFM) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Earnings and Valuation

This table compares VanEck Biotech ETF and MFS Municipal Income Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VanEck Biotech ETF	N/A	N/A	N/A	N/A	N/A
MFS Municipal Income Trust	$46.87 million	5.32	N/A	N/A	N/A

Risk and Volatility

VanEck Biotech ETF has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, MFS Municipal Income Trust has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Dividends

VanEck Biotech ETF pays an annual dividend of $1.25 per share and has a dividend yield of 0.8%. MFS Municipal Income Trust pays an annual dividend of $0.25 per share and has a dividend yield of 4.9%.

Analyst Ratings

This is a breakdown of recent recommendations for VanEck Biotech ETF and MFS Municipal Income Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VanEck Biotech ETF	0	7	4	0	2.66
MFS Municipal Income Trust	0	0	0	0	0.00

VanEck Biotech ETF currently has a consensus price target of $155.04, suggesting a potential upside of 0.00%. Given VanEck Biotech ETF’s stronger consensus rating and higher possible upside, equities analysts clearly believe VanEck Biotech ETF is more favorable than MFS Municipal Income Trust.

Profitability

This table compares VanEck Biotech ETF and MFS Municipal Income Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VanEck Biotech ETF	N/A	N/A	N/A
MFS Municipal Income Trust	N/A	N/A	N/A

Institutional & Insider Ownership

32.0% of VanEck Biotech ETF shares are held by institutional investors. 0.8% of MFS Municipal Income Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

VanEck Biotech ETF beats MFS Municipal Income Trust on 5 of the 8 factors compared between the two stocks.

About VanEck Biotech ETF

The BIOTECH HOLDING COMPANY DEPOSITARY RECEIPTS or HOLDRS TRUST was formed under the depositary trust agreement, among The Bank of New York, as trustee, Merrill Lynch, Pierce, Fenner & Smith Incorporated, other depositors and the owners of the Biotech HOLDRS. The trust currently holds shares of common stock or American depositary shares issued by a group of companies that were, at the time of the initial offering, generally considered to be involved in various segments of thebiotechnology industry.

About MFS Municipal Income Trust

MFS Municipal Income Trust is a close ended fixed income mutual fund launched and managed by Massachusetts Financial Services Company. The fund invests in fixed income markets of the United States. It primarily invests in tax-exempt bonds and tax-exempt notes. The fund benchmarks the performance of its portfolio against Barclays Municipal Bond Index. MFS Municipal Income Trust was founded in November 25, 1986 and and is domiciled in United States.