Head to Head Review: Eaton Vance Municipal Income Trust (NYSE:EVN) & Invesco QQQ (NASDAQ:QQQ)

Eaton Vance Municipal Income Trust (NYSE:EVN) and Invesco QQQ (NASDAQ:QQQ) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Institutional and Insider Ownership

44.6% of Invesco QQQ shares are owned by institutional investors. 1.0% of Eaton Vance Municipal Income Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Eaton Vance Municipal Income Trust and Invesco QQQ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eaton Vance Municipal Income Trust	N/A	N/A	N/A
Invesco QQQ	N/A	N/A	N/A

Earnings & Valuation

This table compares Eaton Vance Municipal Income Trust and Invesco QQQ”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eaton Vance Municipal Income Trust	N/A	N/A	N/A	N/A	N/A
Invesco QQQ	N/A	N/A	N/A	N/A	N/A

Volatility and Risk

Eaton Vance Municipal Income Trust has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Invesco QQQ has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Dividends

Eaton Vance Municipal Income Trust pays an annual dividend of $0.21 per share and has a dividend yield of 1.9%. Invesco QQQ pays an annual dividend of $2.83 per share and has a dividend yield of 0.5%.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Eaton Vance Municipal Income Trust and Invesco QQQ, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eaton Vance Municipal Income Trust	0	0	0	0	0.00
Invesco QQQ	0	3	6	0	2.81

Invesco QQQ has a consensus target price of $617.10, indicating a potential upside of 0.00%. Given Invesco QQQ’s stronger consensus rating and higher possible upside, analysts clearly believe Invesco QQQ is more favorable than Eaton Vance Municipal Income Trust.

Summary

Invesco QQQ beats Eaton Vance Municipal Income Trust on 5 of the 7 factors compared between the two stocks.

About Eaton Vance Municipal Income Trust

Eaton Vance Municipal Income Trust is a close ended fixed income mutual fund launched and managed by Eaton Vance Management. It invests in the fixed income markets. The fund invests primarily in investment grade municipal obligations of various sectors, such as cogeneration, education, electric utilities, general obligations, healthcare, hospital, housing, transportation, and nursing home. Eaton Vance Municipal Income Trust was formed in 1998 and is domiciled in United States.

About Invesco QQQ

PowerShares QQQ Trust, Series 1 is a unit investment trust that issues securities called Nasdaq-100 Index Tracking Stock. The Trust’s investment objective is to provide investment results that generally correspond to the price and yield performance of the Nasdaq-100 Index. The Trust provides investors with the opportunity to purchase units of beneficial interest in the Trust representing proportionate undivided interests in the portfolio of securities held by the Trust, which consists of substantially all of the securities, in substantially the same weighting, as the component securities of the Nasdaq-100 Index. Invesco PowerShares Capital Management, LLC is the Sponsor of the Trust and The Bank of New York Mellon is the Trustee.