TriplePoint Venture Growth BDC (TPVG) and Its Competitors Head to Head Analysis

TriplePoint Venture Growth BDC (NYSE:TPVG) is one of 1,744 public companies in the “Capital Markets” industry, but how does it weigh in compared to its peers? We will compare TriplePoint Venture Growth BDC to similar businesses based on the strength of its dividends, institutional ownership, risk, profitability, valuation, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations for TriplePoint Venture Growth BDC and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TriplePoint Venture Growth BDC	2	3	0	0	1.60
TriplePoint Venture Growth BDC Competitors	5533	20093	22421	641	2.37

TriplePoint Venture Growth BDC currently has a consensus target price of $5.17, indicating a potential upside of 14.10%. As a group, “Capital Markets” companies have a potential upside of 26.90%. Given TriplePoint Venture Growth BDC’s peers stronger consensus rating and higher probable upside, analysts clearly believe TriplePoint Venture Growth BDC has less favorable growth aspects than its peers.

Volatility & Risk

TriplePoint Venture Growth BDC has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, TriplePoint Venture Growth BDC’s peers have a beta of 0.81, meaning that their average share price is 19% less volatile than the S&P 500.

Profitability

This table compares TriplePoint Venture Growth BDC and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TriplePoint Venture Growth BDC	44.58%	10.68%	4.58%
TriplePoint Venture Growth BDC Competitors	304.35%	79.05%	3.65%

Insider & Institutional Ownership

12.8% of TriplePoint Venture Growth BDC shares are held by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are held by institutional investors. 1.5% of TriplePoint Venture Growth BDC shares are held by company insiders. Comparatively, 13.0% of shares of all “Capital Markets” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

TriplePoint Venture Growth BDC pays an annual dividend of $0.92 per share and has a dividend yield of 20.3%. TriplePoint Venture Growth BDC pays out 92.9% 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 3.2% and pay out 30.1% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares TriplePoint Venture Growth BDC and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TriplePoint Venture Growth BDC	$90.93 million	$49.21 million	4.57
TriplePoint Venture Growth BDC Competitors	$2.54 billion	$394.83 million	15.80

TriplePoint Venture Growth BDC’s peers have higher revenue and earnings than TriplePoint Venture Growth BDC. TriplePoint Venture Growth BDC is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

TriplePoint Venture Growth BDC peers beat TriplePoint Venture Growth BDC on 12 of the 15 factors compared.

About TriplePoint Venture Growth BDC

TriplePoint Venture Growth BDC Corp. is a business development company specializing investments in venture capital-backed companies at the growth stage investments. It also provides debt financing to venture growth space companies which includes growth capital loans, secured and customized loans, equipment financings, revolving loans and direct equity investments. The fund seeks to invest in e-commerce, entertainment, technology and life sciences sector. Within technology the areas of focus include: Security, wireless communication equipments, network system and software, business applications software, conferencing equipments/services .big data, cloud computing, data storage, electronics, energy efficiency, hardware, information services, internet and media, networking, semiconductors, software, software as a service, and other technology related subsectors and within life sciences the areas of focus include: biotechnology, bio fuels/bio mass, diagnostic testing and bioinformatics, drug delivery, drug discovery, healthcare information systems, healthcare services, medical, surgical and therapeutic devices, pharmaceuticals and other life science related subsectors. Within growth capital loans it invests between $5 million and $50 million, for equipment financings it invests between $5 million and $25 million, for revolving loans it invests between $1 million and $25 million, and for direct equity investments it may invest between $0.1 million and $5 million (generally not exceeding 5% of the company’s total equity). The debt financing products are typically structured as lines of credit and it invests through warrants and secured loans. It targeted returns between 10% and 18%. It does not take board seat in the company.