Head-To-Head Analysis: Invesco Municipal Opportunity Trust (NYSE:VMO) and VanEck Biotech ETF (NASDAQ:BBH)

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

Analyst Recommendations

This is a breakdown of current ratings for Invesco Municipal Opportunity Trust and VanEck Biotech ETF, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invesco Municipal Opportunity Trust	0	0	0	0	0.00
VanEck Biotech ETF	0	8	4	0	2.66

VanEck Biotech ETF has a consensus target price of $145.53, indicating a potential upside of 0.00%. Given VanEck Biotech ETF’s stronger consensus rating and higher probable upside, analysts plainly believe VanEck Biotech ETF is more favorable than Invesco Municipal Opportunity Trust.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Invesco Municipal Opportunity Trust	N/A	N/A	N/A
VanEck Biotech ETF	N/A	N/A	N/A

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Invesco Municipal Opportunity Trust	$24.46 million	25.74	N/A	N/A	N/A
VanEck Biotech ETF	N/A	N/A	N/A	N/A	N/A

Volatility and Risk

Invesco Municipal Opportunity Trust has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, VanEck Biotech ETF has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Dividends

Invesco Municipal Opportunity Trust pays an annual dividend of $0.68 per share and has a dividend yield of 7.3%. VanEck Biotech ETF pays an annual dividend of $1.25 per share and has a dividend yield of 0.9%.

Insider & Institutional Ownership

42.6% of Invesco Municipal Opportunity Trust shares are held by institutional investors. Comparatively, 32.0% of VanEck Biotech ETF shares are held by institutional investors. 1.0% of Invesco Municipal Opportunity Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

About Invesco Municipal Opportunity Trust

Invesco Municipal Opportunity Trust is a closed ended fixed income mutual fund launched by Invesco Ltd. The fund is co-managed by Invesco Advisers, Inc., INVESCO Asset Management (Japan) Limited, INVESCO Asset Management Deutschland GmbH, INVESCO Asset Management Limited, Invesco Canada Ltd., Invesco Hong Kong Limited, and INVESCO Senior Secured Management, Inc. It invests in the fixed income markets of the United States. The fund primarily invests in investment grade municipal securities which include municipal bonds, municipal notes, municipal commercial paper, and lease obligations. It employs fundamental analysis with bottom-up security selection approach to create its portfolio. The fund was formerly known as Invesco Van Kampen Municipal Opportunity Trust. Invesco Municipal Opportunity Trust was formed on April 24, 1992 and is domiciled in the United States.

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.