Triangle Capital (NYSE: TCAP) and TriplePoint Venture Growth BDC (NYSE:TPVG) are both small-cap financials companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.
This table compares Triangle Capital and TriplePoint Venture Growth BDC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TriplePoint Venture Growth BDC||43.72%||12.05%||5.99%|
Triangle Capital pays an annual dividend of $1.20 per share and has a dividend yield of 11.8%. TriplePoint Venture Growth BDC pays an annual dividend of $1.44 per share and has a dividend yield of 11.0%. Triangle Capital pays out -133.3% of its earnings in the form of a dividend.
Volatility and Risk
Triangle Capital has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, TriplePoint Venture Growth BDC has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.
Earnings and Valuation
This table compares Triangle Capital and TriplePoint Venture Growth BDC’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Triangle Capital||$113.68 million||4.26||$34.25 million||($0.90)||-11.28|
|TriplePoint Venture Growth BDC||$43.63 million||5.33||$11.12 million||N/A||N/A|
Triangle Capital has higher revenue and earnings than TriplePoint Venture Growth BDC.
Insider & Institutional Ownership
34.9% of Triangle Capital shares are held by institutional investors. Comparatively, 33.8% of TriplePoint Venture Growth BDC shares are held by institutional investors. 4.1% of Triangle Capital shares are held by company insiders. Comparatively, 1.3% of TriplePoint Venture Growth BDC shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a breakdown of current ratings and price targets for Triangle Capital and TriplePoint Venture Growth BDC, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TriplePoint Venture Growth BDC||0||1||1||0||2.50|
Triangle Capital presently has a consensus price target of $16.00, suggesting a potential upside of 57.64%. TriplePoint Venture Growth BDC has a consensus price target of $14.00, suggesting a potential upside of 6.54%. Given Triangle Capital’s higher probable upside, research analysts clearly believe Triangle Capital is more favorable than TriplePoint Venture Growth BDC.
Triangle Capital beats TriplePoint Venture Growth BDC on 8 of the 15 factors compared between the two stocks.
About Triangle Capital
Triangle Capital Corporation is an internally managed, non-diversified closed-end management investment company. The Company is a specialty finance company that provides customized financing to lower middle market companies located primarily in the United States. The Company’s investment objective is to seek attractive returns by generating current income from its debt investments and capital appreciation from its equity-related investments. The Company invests primarily in subordinated debt securities secured by second lien security interests in portfolio company assets, coupled with equity interests. The Company also invests in senior debt securities secured by first lien security interests in portfolio company assets. The Company’s portfolio includes its investments in various industry sectors, such as baby products; manufacturer and distributor for independent artists and authors; loan origination software solutions provider, and restaurant.
About TriplePoint Venture Growth BDC
TriplePoint Venture Growth BDC Corp. is a closed-end, non-diversified management investment company. The Company’s investment objective is to maximize its total return to stockholders primarily in the form of current income and, to a lesser extent, capital appreciation by primarily lending with warrants to venture growth stage companies focused in technology, life sciences and other high growth industries, which are backed by TriplePoint Capital LLC’s (TPC) select group of venture capital investors. The Company targets investment opportunities in venture growth stage companies backed by venture capital investors. The Company originates and invests primarily in loans that have a secured collateral position and are used by venture growth stage companies to finance their continued expansion and growth, equipment financings and, on a select basis, revolving loans. The Company is managed by TPVG Advisers LLC.
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