Reviewing XAI Octagon Floating Rate & Alternative Income Trust (XFLT) and Its Peers

Institutional and Insider Ownership

30.6% of shares of all “Capital Markets” companies are owned by institutional investors. 13.2% of shares of all “Capital Markets” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares XAI Octagon Floating Rate & Alternative Income Trust and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
XAI Octagon Floating Rate & Alternative Income Trust	-$49.23 million	N/A	22.07
XAI Octagon Floating Rate & Alternative Income Trust Competitors	$5.13 billion	$396.44 million	12.42

XAI Octagon Floating Rate & Alternative Income Trust’s competitors have higher revenue and earnings than XAI Octagon Floating Rate & Alternative Income Trust. XAI Octagon Floating Rate & Alternative Income Trust is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

XAI Octagon Floating Rate & Alternative Income Trust pays an annual dividend of $4.62 per share and has a dividend yield of 24.1%. XAI Octagon Floating Rate & Alternative Income Trust pays out 531.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Capital Markets” companies pay a dividend yield of 3.0% and pay out 28.1% of their earnings in the form of a dividend.

Profitability

This table compares XAI Octagon Floating Rate & Alternative Income Trust and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XAI Octagon Floating Rate & Alternative Income Trust	N/A	N/A	N/A
XAI Octagon Floating Rate & Alternative Income Trust Competitors	270.27%	78.10%	3.57%

Summary

XAI Octagon Floating Rate & Alternative Income Trust competitors beat XAI Octagon Floating Rate & Alternative Income Trust on 7 of the 9 factors compared.

XAI Octagon Floating Rate & Alternative Income Trust Company Profile

XAI Octagon Floating Rate & Alternative Income Term Trust invests in a dynamically managed portfolio of floating-rate credit instruments and other structured credit investments within the private markets. Under normal market conditions, the Trust will invest at least 80% of managed assets in senior secured loans, CLO debt and CLO equity.

The Trust seeks attractive total return with an emphasis on income generation across multiple stages of the credit cycle. There can be no assurance that the Trust will achieve its investment objective, and you could lose some or all of your investment.