Critical Comparison: NI (NASDAQ:NODK) & BlackRock TCP Capital (NASDAQ:TCPC)

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NI (NASDAQ:NODK) and BlackRock TCP Capital (NASDAQ:TCPC) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for NI and BlackRock TCP Capital, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NI 0 0 0 0 N/A
BlackRock TCP Capital 0 0 4 0 3.00

BlackRock TCP Capital has a consensus price target of $16.88, suggesting a potential upside of 18.17%. Given BlackRock TCP Capital’s higher possible upside, analysts clearly believe BlackRock TCP Capital is more favorable than NI.

Institutional & Insider Ownership

20.7% of NI shares are owned by institutional investors. Comparatively, 42.8% of BlackRock TCP Capital shares are owned by institutional investors. 0.5% of NI shares are owned by insiders. Comparatively, 0.6% of BlackRock TCP Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares NI and BlackRock TCP Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NI 16.51% 12.44% 7.31%
BlackRock TCP Capital 21.88% 11.27% 5.69%

Valuation & Earnings

This table compares NI and BlackRock TCP Capital’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NI $212.37 million 1.81 $31.08 million N/A N/A
BlackRock TCP Capital $190.50 million 4.41 $45.48 million $1.59 8.98

BlackRock TCP Capital has lower revenue, but higher earnings than NI.

Dividends

BlackRock TCP Capital pays an annual dividend of $1.44 per share and has a dividend yield of 10.1%. NI does not pay a dividend. BlackRock TCP Capital pays out 90.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

NI has a beta of 0.06, meaning that its stock price is 94% less volatile than the S&P 500. Comparatively, BlackRock TCP Capital has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Summary

BlackRock TCP Capital beats NI on 9 of the 14 factors compared between the two stocks.

About NI

NI Holdings, Inc. underwrites property and casualty insurance products in North Dakota, South Dakota, Nebraska, Minnesota, Nevada, Arizona, and Illinois. Its products include multi-peril crop, crop hail, private passenger automobile, farm owners, homeowners, and commercial property and liability insurance policies, as well as non-standard automobile insurance products. The company distributes its insurance products through independent producers and independent agents. The company was founded in 1946 and is headquartered in Fargo, North Dakota. NI Holdings, Inc. is a subsidiary of Nodak Mutual Group, Inc.

About BlackRock TCP Capital

BlackRock TCP Capital Corp. is a business development company specializing in direct equity and debt investments in middle-market, senior secured loans, junior loans, originated loans, mezzanine, senior debt instruments, bonds, and secondary-market investments. It seeks to invest in the United States. The fund typically invests between $10 million and $35 million in companies with enterprise values between $100 million and $1500 million. It prefers to make equity investments in companies for an ownership stake.

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