Critical Contrast: Medley Capital Corporation (MCC) & Tortoise Energy Infrastructure Corporation (TYG)
Medley Capital Corporation (NYSE: MCC) and Tortoise Energy Infrastructure Corporation (NYSE:TYG) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitabiliy and risk.
Medley Capital Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 9.9%. Tortoise Energy Infrastructure Corporation pays an annual dividend of $3.28 per share and has a dividend yield of 10.7%. Medley Capital Corporation pays out 640.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of current ratings and price targets for Medley Capital Corporation and Tortoise Energy Infrastructure Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Medley Capital Corporation||0||5||0||0||2.00|
|Tortoise Energy Infrastructure Corporation||0||0||1||0||3.00|
Medley Capital Corporation presently has a consensus price target of $7.00, suggesting a potential upside of 8.02%. Tortoise Energy Infrastructure Corporation has a consensus price target of $34.00, suggesting a potential upside of 10.82%. Given Tortoise Energy Infrastructure Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Tortoise Energy Infrastructure Corporation is more favorable than Medley Capital Corporation.
This table compares Medley Capital Corporation and Tortoise Energy Infrastructure Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Medley Capital Corporation||4.60%||8.10%||4.00%|
|Tortoise Energy Infrastructure Corporation||N/A||N/A||N/A|
Risk & Volatility
Medley Capital Corporation has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Tortoise Energy Infrastructure Corporation has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.
Valuation and Earnings
This table compares Medley Capital Corporation and Tortoise Energy Infrastructure Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Medley Capital Corporation||N/A||N/A||N/A||$0.10||64.81|
|Tortoise Energy Infrastructure Corporation||N/A||N/A||N/A||N/A||N/A|
Institutional and Insider Ownership
36.2% of Medley Capital Corporation shares are held by institutional investors. Comparatively, 34.1% of Tortoise Energy Infrastructure Corporation shares are held by institutional investors. 8.7% of Medley Capital Corporation shares are held by insiders. Comparatively, 0.3% of Tortoise Energy Infrastructure Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Tortoise Energy Infrastructure Corporation beats Medley Capital Corporation on 6 of the 11 factors compared between the two stocks.
Medley Capital Corporation Company Profile
Medley Capital Corporation is a non-diversified closed-end management investment company. The Company’s investment objective is to generate current income and capital appreciation by lending directly to privately-held middle market companies, primarily through directly originated transactions to help these companies expand their business, refinance and make acquisitions. Its investment portfolio includes senior secured first lien term loans, senior secured second lien term loans, unitranche, senior secured first lien notes, subordinated notes and warrants and minority equity securities. It may invest up to 100% of its assets in securities acquired directly from issuers in privately negotiated transactions. Its portfolio of investments includes industries, including banking, finance, insurance and real estate; construction and building; healthcare and pharmaceuticals; beverage and food, and telecommunications. MCC Advisors LLC is the Company’s investment advisor.
Tortoise Energy Infrastructure Corporation Company Profile
Tortoise Energy Infrastructure Corporation (the Fund) is a non-diversified, closed-end management investment company. The Fund seeks a high level of total return with a focus on current distributions paid to stockholders. The Fund invests primarily in equity securities of master limited partnerships (MLPs) and their affiliates that transport, gather, process or store natural gas, natural gas liquids (NGLs), crude oil and refined petroleum products. Under normal circumstances, the Fund invests at least 90% of its total assets (including assets obtained through leverage) in securities of energy infrastructure companies and at least 70% of its total assets in equity securities of MLPs. The Fund may invest up to 30% of its total assets in restricted securities, primarily through direct placements. The Fund may invest up to 25% of its total assets in debt securities, including those rated below investment grade. Tortoise Capital Advisors, L.L.C. is the investment advisor of the Fund.
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