TCG BDC INC (CGBD) & Federal Agricultural Mortgage Corp. (AGM) Head-To-Head Analysis
TCG BDC INC (NASDAQ: CGBD) and Federal Agricultural Mortgage Corp. (NYSE:AGM) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitabiliy and dividends.
TCG BDC INC pays an annual dividend of $1.48 per share and has a dividend yield of 8.0%. Federal Agricultural Mortgage Corp. pays an annual dividend of $1.44 per share and has a dividend yield of 2.1%. Federal Agricultural Mortgage Corp. pays out 21.2% of its earnings in the form of a dividend. TCG BDC INC has raised its dividend for 5 consecutive years. TCG BDC INC is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of recent ratings and target prices for TCG BDC INC and Federal Agricultural Mortgage Corp., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TCG BDC INC||0||0||4||0||3.00|
|Federal Agricultural Mortgage Corp.||0||1||0||0||2.00|
TCG BDC INC presently has a consensus price target of $19.13, indicating a potential upside of 3.21%. Federal Agricultural Mortgage Corp. has a consensus price target of $65.00, indicating a potential downside of 3.47%. Given TCG BDC INC’s stronger consensus rating and higher probable upside, equities analysts plainly believe TCG BDC INC is more favorable than Federal Agricultural Mortgage Corp..
This table compares TCG BDC INC and Federal Agricultural Mortgage Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TCG BDC INC||N/A||N/A||N/A|
|Federal Agricultural Mortgage Corp.||24.06%||16.60%||0.56%|
Earnings & Valuation
This table compares TCG BDC INC and Federal Agricultural Mortgage Corp.’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|TCG BDC INC||N/A||N/A||N/A||N/A||N/A|
|Federal Agricultural Mortgage Corp.||$172.28 million||4.14||$71.85 million||$6.78||9.93|
Federal Agricultural Mortgage Corp. has higher revenue and earnings than TCG BDC INC.
Insider and Institutional Ownership
1.6% of TCG BDC INC shares are held by institutional investors. Comparatively, 63.4% of Federal Agricultural Mortgage Corp. shares are held by institutional investors. 0.1% of TCG BDC INC shares are held by company insiders. Comparatively, 3.8% of Federal Agricultural Mortgage Corp. shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
About TCG BDC INC
TCG BDC, Inc., formerly Carlyle GMS Finance, Inc., is a managed and non-diversified closed-end investment company. The Company is focused on lending to middle market companies. The Company’s investment objective is to generate current income and capital appreciation primarily through debt investments in the United States and middle market companies. The Company seeks to achieve its investment objective primarily through direct originations of secured debt, including first lien senior secured loans and second lien senior secured loans. The Company’s first lien senior secured loans include stand-alone first lien loans, first lien/last out loans, and unitranche loans. Second lien senior secured loans (Middle Market Senior Loans), with the balance of its assets invested yielding in higher investments include unsecured debt, mezzanine debt and investments in equities. The Company’s investment adviser is Carlyle GMS Investment Management L.L.C.
About Federal Agricultural Mortgage Corp.
Federal Agricultural Mortgage Corporation (Farmer Mac) provides a secondary market for a range of loans made to borrowers in rural America. The Company’s segments include Farm & Ranch, USDA Guarantees, Rural Utilities, Institutional Credit and Corporate. Its secondary market activities are purchasing eligible loans directly from lenders; providing advances against eligible loans by purchasing obligations secured by those loans; securitizing assets and guaranteeing the payment of principal and interest on the resulting securities that represent interests in, or obligations secured by, pools of eligible loans; and issuing long-term standby purchase commitments (LTSPCs) for eligible loans. The loans eligible for the secondary market provided by Farmer Mac include mortgage loans secured by first liens on agricultural real estate, including part-time farms and rural housing (comprising the assets eligible for the Farm & Ranch line of business).
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