Reviewing TCP Capital Corp. (TCPC) & Eaton Vance Floating-Rate Income Trust (EFT)
Eaton Vance Floating-Rate Income Trust (NYSE: EFT) and TCP Capital Corp. (NASDAQ:TCPC) are both financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitabiliy.
Insider & Institutional Ownership
51.0% of TCP Capital Corp. shares are owned by institutional investors. 0.6% of TCP Capital Corp. shares are owned by company 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.
This is a summary of current ratings and price targets for Eaton Vance Floating-Rate Income Trust and TCP Capital Corp., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Eaton Vance Floating-Rate Income Trust||0||0||0||0||N/A|
|TCP Capital Corp.||0||1||7||0||2.88|
TCP Capital Corp. has a consensus price target of $17.57, indicating a potential upside of 3.79%. Given TCP Capital Corp.’s higher probable upside, analysts plainly believe TCP Capital Corp. is more favorable than Eaton Vance Floating-Rate Income Trust.
TCP Capital Corp. pays an annual dividend of $1.44 per share and has a dividend yield of 8.5%. Eaton Vance Floating-Rate Income Trust does not pay a dividend. TCP Capital Corp. 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.
This table compares Eaton Vance Floating-Rate Income Trust and TCP Capital Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Eaton Vance Floating-Rate Income Trust||N/A||N/A||N/A|
|TCP Capital Corp.||54.74%||12.93%||7.29%|
Valuation & Earnings
This table compares Eaton Vance Floating-Rate Income Trust and TCP Capital Corp.’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Eaton Vance Floating-Rate Income Trust||N/A||N/A||N/A||N/A||N/A|
|TCP Capital Corp.||N/A||N/A||N/A||$1.55||10.92|
TCP Capital Corp. beats Eaton Vance Floating-Rate Income Trust on 8 of the 9 factors compared between the two stocks.
Eaton Vance Floating-Rate Income Trust Company Profile
Eaton Vance Floating-Rate Income Trust (the Trust) is a diversified, closed-end management investment company. The Trust’s investment objective is to provide a high level of current income. The Trust will, as a secondary objective, also seek preservation of capital to the extent consistent with its primary goal of high current income. Normally, the Trust invests approximately 80% of its total assets in senior loans of domestic and foreign borrowers that are denominated in the United States dollars, euros, British pounds, Swiss francs, Canadian dollars and Australian dollars. The Trust invests in a range of sectors, including healthcare, electronics/electrical, business equipment and services, retailers (except food and drug), chemicals and plastics, food products, oil and gas, lodging and casinos, insurance, and leisure goods/activities/movies. Eaton Vance Management is the investment advisor of the Trust.
TCP Capital Corp. Company Profile
TCP Capital Corp. is an externally managed, closed-end, non-diversified management investment company. The Company’s investment objective is to achieve high total returns through current income and capital appreciation, with an emphasis on principal protection. It invests in the debt of middle-market companies, as well as small businesses, including senior secured loans, junior loans, mezzanine debt and bonds. Its investments may include an equity component and may make equity investments directly. It intends to focus on privately negotiated investments in debt of middle-market companies. It may make investments of all kinds and at all levels of the capital structure, including in equity interests, such as preferred or common stock and warrants or options received in connection with its debt investments. As of December 31, 2016, its investment portfolio consisted of 90 portfolio companies. Tennenbaum Capital Partners, LLC is the investment manager and advisor of the Company.
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