Comparing Brookfield (NYSE:BN) & Blackrock Tcp Capital (NASDAQ:TCPC)

Brookfield (NYSE:BN) and Blackrock Tcp Capital (NASDAQ:TCPC) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Dividends

Brookfield pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. Blackrock Tcp Capital pays an annual dividend of $0.68 per share and has a dividend yield of 16.8%. Brookfield pays out 50.9% of its earnings in the form of a dividend. Blackrock Tcp Capital pays out -53.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Brookfield has raised its dividend for 2 consecutive years. Blackrock Tcp Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Brookfield and Blackrock Tcp Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brookfield	1.85%	3.93%	1.22%
Blackrock Tcp Capital	-61.27%	13.85%	5.28%

Valuation & Earnings

This table compares Brookfield and Blackrock Tcp Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield	$77.06 billion	1.16	$1.31 billion	$0.55	66.51
Blackrock Tcp Capital	$201.79 million	1.69	-$88.93 million	($1.28)	-3.17

Brookfield has higher revenue and earnings than Blackrock Tcp Capital. Blackrock Tcp Capital is trading at a lower price-to-earnings ratio than Brookfield, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Brookfield has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, Blackrock Tcp Capital has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Brookfield and Blackrock Tcp Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield	0	2	10	1	2.92
Blackrock Tcp Capital	1	3	0	0	1.75

Brookfield presently has a consensus price target of $57.40, indicating a potential upside of 56.91%. Blackrock Tcp Capital has a consensus price target of $4.00, indicating a potential downside of 1.33%. Given Brookfield’s stronger consensus rating and higher probable upside, equities analysts plainly believe Brookfield is more favorable than Blackrock Tcp Capital.

Insider and Institutional Ownership

61.6% of Brookfield shares are held by institutional investors. 11.0% of Brookfield shares are held by insiders. Comparatively, 0.4% of Blackrock Tcp Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Brookfield beats Blackrock Tcp Capital on 13 of the 18 factors compared between the two stocks.

About Brookfield

Brookfield Corporation is an alternative asset manager and REIT/Real Estate Investment Manager firm focuses on real estate, renewable power, infrastructure and venture capital and private equity assets. It manages a range of public and private investment products and services for institutional and retail clients. It typically makes investments in sizeable, premier assets across geographies and asset classes. It invests both its own capital as well as capital from other investors. Within private equity and venture capital, it focuses on acquisition, early ventures, control buyouts and financially distressed, buyouts and corporate carve-outs, recapitalizations, convertible, senior and mezzanine financings, operational and capital structure restructuring, strategic re-direction, turnaround, and under-performing midmarket companies. It invests in both public debt and equity markets. It invests in private equity sectors with focus on Business Services include infrastructure, healthcare, road fuel distribution and marketing, construction and real estate; Industrials include manufacturers of automotive batteries, graphite electrodes, returnable plastic packaging, and sanitation management and development; and Residential/ infrastructure services. It targets companies which likely possess underlying real assets, primarily in sectors such as industrial products, building materials, metals, mining, homebuilding, oil and gas, paper and packaging, manufacturing and forest product sectors. It invests globally with focus on North America including Brazil, the United States, Canada; Europe; and Australia; and Asia-Pacific. The firm considers equity investments in the range of $2 million to $500 million. It has a four-year investment period and a 10-year term with two one-year extensions. The firm prefers to take minority stake and majority stake. Brookfield Corporation was founded in 1997 and based in Toronto, Canada with additional offices across Northern America; South America; Europe; Middle East and Asia.

About Blackrock Tcp Capital

BlackRock TCP Capital Corp. is a business development company specializing in direct equity and debt investments in middle-market, small businesses, debt securities, senior secured loans, junior loans, originated loans, mezzanine, senior debt instruments, bonds, and secondary-market investments. It typically invests in communication services, public relations services, television, wireless telecommunication services, apparel, textile mills, restaurants, retailing, energy, oil and gas extraction, Patent owners and Lessors, Federal and Federally- Sponsored Credit agencies, insurance, hospital and healthcare centers, Biotechnology, engineering services, heavy electrical equipment, tax accounting, scientific and related consulting services, charter freight air transportation, Information technology consulting, application hosting services, software diagram and design, computer aided design, communication equipment, electronics manufacturing equipment, computer components, chemicals. It seeks to invest in the United States. The fund typically invests between $10 million and $35 million in companies with enterprise values between $100 million and $1500 million including complex situations. It prefers to make equity investments in companies for an ownership stake.