Critical Analysis: Invesco Trust for Investment Grade New York Municipals (NYSE:VTN) versus iShares Biotechnology ETF (NASDAQ:IBB)

Invesco Trust for Investment Grade New York Municipals (NYSE:VTN) and iShares Biotechnology ETF (NASDAQ:IBB) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Analyst Ratings

This is a breakdown of current ratings and price targets for Invesco Trust for Investment Grade New York Municipals and iShares Biotechnology ETF, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invesco Trust for Investment Grade New York Municipals	0	0	0	0	0.00
iShares Biotechnology ETF	0	34	110	2	2.70

iShares Biotechnology ETF has a consensus price target of $130.29, suggesting a potential upside of 0.00%. Given iShares Biotechnology ETF’s stronger consensus rating and higher possible upside, analysts plainly believe iShares Biotechnology ETF is more favorable than Invesco Trust for Investment Grade New York Municipals.

Profitability

This table compares Invesco Trust for Investment Grade New York Municipals and iShares Biotechnology ETF’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invesco Trust for Investment Grade New York Municipals	N/A	N/A	N/A
iShares Biotechnology ETF	N/A	N/A	N/A

Insider & Institutional Ownership

34.9% of Invesco Trust for Investment Grade New York Municipals shares are held by institutional investors. Comparatively, 62.5% of iShares Biotechnology ETF shares are held by institutional investors. 1.0% of Invesco Trust for Investment Grade New York Municipals shares are held 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.

Valuation and Earnings

This table compares Invesco Trust for Investment Grade New York Municipals and iShares Biotechnology ETF”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Invesco Trust for Investment Grade New York Municipals	$19.37 million	10.48	N/A	N/A	N/A
iShares Biotechnology ETF	N/A	N/A	N/A	N/A	N/A

Volatility and Risk

Invesco Trust for Investment Grade New York Municipals has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, iShares Biotechnology ETF has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Dividends

Invesco Trust for Investment Grade New York Municipals pays an annual dividend of $0.67 per share and has a dividend yield of 6.4%. iShares Biotechnology ETF pays an annual dividend of $0.38 per share and has a dividend yield of 0.3%.

Summary

iShares Biotechnology ETF beats Invesco Trust for Investment Grade New York Municipals on 6 of the 9 factors compared between the two stocks.

About Invesco Trust for Investment Grade New York Municipals

Invesco Trust for Investment Grade New York Municipals 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 New York 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 Trust for Investment Grade New York Municipals. Invesco Trust for Investment Grade New York Municipals was formed on March 27, 1992 and is domiciled in the United States.

About iShares Biotechnology ETF

iShares Nasdaq Biotechnology ETF (the Fund), formerly iShares Nasdaq Biotechnology Index Fund, is an exchange-traded fund (ETF). The Fund seeks investment results that correspond generally to the price and yield performance of the NASDAQ Biotechnology Index (the Index). The Index contains securities of NASDAQ listed companies that are classified according to the Industry Classification Benchmark as either biotechnology or pharmaceuticals, which also meet other eligibility criteria determined by NASDAQ. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. The Fund’s investment advisor is BlackRock Fund Advisors, which is indirectly owned by BlackRock, Inc.