TCP Capital Corp. (NASDAQ: TCPC) is one of 556 publicly-traded companies in the “Closed End Funds” industry, but how does it contrast to its rivals? We will compare TCP Capital Corp. to similar businesses based on the strength of its earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of recent ratings for TCP Capital Corp. and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TCP Capital Corp. 0 0 7 0 3.00
TCP Capital Corp. Competitors 341 1474 1499 26 2.36

TCP Capital Corp. currently has a consensus price target of $18.20, suggesting a potential upside of 14.54%. As a group, “Closed End Funds” companies have a potential upside of 41.48%. Given TCP Capital Corp.’s rivals higher probable upside, analysts plainly believe TCP Capital Corp. has less favorable growth aspects than its rivals.

Dividends

TCP Capital Corp. pays an annual dividend of $1.44 per share and has a dividend yield of 9.1%. 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. As a group, “Closed End Funds” companies pay a dividend yield of 9.0% and pay out 87.5% of their earnings in the form of a dividend.

Volatility & Risk

TCP Capital Corp. has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, TCP Capital Corp.’s rivals have a beta of 0.56, meaning that their average share price is 44% less volatile than the S&P 500.

Valuation and Earnings

This table compares TCP Capital Corp. and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
TCP Capital Corp. N/A N/A 10.25
TCP Capital Corp. Competitors $57.20 million $39.05 million -0.23

TCP Capital Corp.’s rivals have higher revenue and earnings than TCP Capital Corp.. TCP Capital Corp. is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares TCP Capital Corp. and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TCP Capital Corp. 54.74% 12.93% 7.29%
TCP Capital Corp. Competitors 518.10% 7.79% 6.00%

Insider and Institutional Ownership

53.5% of TCP Capital Corp. shares are owned by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are owned by institutional investors. 0.6% of TCP Capital Corp. shares are owned by insiders. Comparatively, 3.3% of shares of all “Closed End Funds” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

TCP Capital Corp. beats its rivals on 8 of the 14 factors compared.

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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