Stock Analysis & Valuation RiverNorth Capital and Income Fund, Inc. (RSF)

• Previous Close: $14.49
• Sector Valuation Confidence Level: High

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	170.22	1075
Intrinsic value (DCF)	24.09	66
Graham-Dodd Method		n/a
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

RiverNorth Capital and Income Fund, Inc. (NYSE: RSF) is a non-diversified, closed-end management investment company focused on delivering high current income through a diversified portfolio of consumer, small business, and specialty finance debt assets. Headquartered in West Palm Beach, Florida, RSF strategically invests in marketplace lending originators, leveraging niche opportunities in the financial services sector. Operating in the asset management industry, RSF provides investors with exposure to alternative credit markets, differentiating itself through a specialized approach to income generation. With a market capitalization of approximately $49.5 million, RSF appeals to income-focused investors seeking yield in a low-interest-rate environment. The fund’s disciplined investment strategy and focus on high-yield debt instruments position it as a unique player in the closed-end fund space.

Investment Summary

RiverNorth Capital and Income Fund (RSF) presents an attractive option for income-seeking investors, with a strong dividend yield of $1.6571 per share and a diluted EPS of $1.78. The fund’s focus on marketplace lending and specialty finance debt provides diversification away from traditional fixed-income assets. However, risks include its relatively small market cap (~$49.5M) and high leverage (total debt of ~$48.6M), which could amplify volatility. The fund’s low beta (0.26) suggests lower sensitivity to market swings, but its niche exposure may limit liquidity. Investors should weigh its high-yield potential against credit risk and sector concentration.

Competitive Analysis

RiverNorth Capital and Income Fund (RSF) competes in the closed-end fund (CEF) space with a unique focus on marketplace lending and specialty finance debt. Its competitive advantage lies in its targeted exposure to non-traditional credit markets, which can offer higher yields than conventional fixed-income assets. However, its small size (~$49.5M market cap) limits economies of scale compared to larger CEFs. RSF’s leverage (~$48.6M debt) enhances yield but increases risk, particularly in rising-rate environments. The fund’s performance is closely tied to the health of the consumer and small business lending sectors, making it more cyclical than broader fixed-income funds. While its low beta suggests defensive characteristics, its niche strategy may struggle to attract institutional investors. Competitors with broader mandates or lower leverage may offer more stability, but RSF remains a compelling option for yield-focused portfolios.

Major Competitors

• PIMCO Dynamic Credit and Mortgage Income Fund (PCI): PCI is a larger, more diversified CEF managed by PIMCO, with a focus on mortgage-backed securities and corporate credit. Its scale and institutional backing provide liquidity advantages over RSF, but its higher expense ratio and interest rate sensitivity may deter some investors.
• PIMCO Corporate & Income Opportunity Fund (PTY): PTY is another PIMCO-managed CEF with a broader mandate, including corporate bonds and emerging market debt. It offers higher liquidity and brand recognition than RSF but may have lower yield potential due to its more conservative credit exposure.
• Eagle Point Credit Company Inc. (ECC): ECC specializes in collateralized loan obligations (CLOs), competing with RSF in alternative credit. ECC’s higher yield and institutional investor base make it a strong competitor, though its CLO focus introduces different risks compared to RSF’s marketplace lending strategy.
• Oxford Lane Capital Corp. (OXLC): OXLC focuses on CLO equity and debt, offering high yield but with significant volatility. Its larger size (~$1B market cap) provides better liquidity than RSF, but its performance is heavily tied to leveraged loan markets, presenting different risk-return dynamics.