Contrasting Medley Capital Corporation (MCC) and TriplePoint Venture Growth BDC Corp. (TPVG)
Medley Capital Corporation (NYSE: MCC) and TriplePoint Venture Growth BDC Corp. (NYSE:TPVG) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.
Risk and Volatility
Medley Capital Corporation has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, TriplePoint Venture Growth BDC Corp. has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.
Valuation & Earnings
This table compares Medley Capital Corporation and TriplePoint Venture Growth BDC Corp.’s 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)||-58.40|
|TriplePoint Venture Growth BDC Corp.||N/A||N/A||N/A||$1.89||7.02|
Medley Capital Corporation is trading at a lower price-to-earnings ratio than TriplePoint Venture Growth BDC Corp., indicating that it is currently the more affordable of the two stocks.
This table compares Medley Capital Corporation and TriplePoint Venture Growth BDC Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Medley Capital Corporation||-6.07%||8.04%||3.92%|
|TriplePoint Venture Growth BDC Corp.||56.60%||13.05%||6.50%|
Medley Capital Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 11.0%. TriplePoint Venture Growth BDC Corp. pays an annual dividend of $1.44 per share and has a dividend yield of 10.9%. Medley Capital Corporation pays out -640.0% of its earnings in the form of a dividend. TriplePoint Venture Growth BDC Corp. pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Medley Capital Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of current ratings for Medley Capital Corporation and TriplePoint Venture Growth BDC Corp., 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|
|TriplePoint Venture Growth BDC Corp.||0||1||0||0||2.00|
Medley Capital Corporation currently has a consensus price target of $7.00, suggesting a potential upside of 19.86%. TriplePoint Venture Growth BDC Corp. has a consensus price target of $14.00, suggesting a potential upside of 5.50%. Given Medley Capital Corporation’s higher possible upside, equities research analysts plainly believe Medley Capital Corporation is more favorable than TriplePoint Venture Growth BDC Corp..
Institutional & Insider Ownership
29.6% of Medley Capital Corporation shares are held by institutional investors. Comparatively, 38.3% of TriplePoint Venture Growth BDC Corp. shares are held by institutional investors. 8.7% of Medley Capital Corporation shares are held by insiders. Comparatively, 1.3% of TriplePoint Venture Growth BDC Corp. shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
TriplePoint Venture Growth BDC Corp. 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.
TriplePoint Venture Growth BDC Corp. Company Profile
TriplePoint Venture Growth BDC Corp. is a closed-end, non-diversified management investment company. The Company’s investment objective is to maximize its total return to stockholders primarily in the form of current income and, to a lesser extent, capital appreciation by primarily lending with warrants to venture growth stage companies focused in technology, life sciences and other high growth industries, which are backed by TriplePoint Capital LLC’s (TPC) select group of venture capital investors. The Company targets investment opportunities in venture growth stage companies backed by venture capital investors. The Company originates and invests primarily in loans that have a secured collateral position and are used by venture growth stage companies to finance their continued expansion and growth, equipment financings and, on a select basis, revolving loans. The Company is managed by TPVG Advisers LLC.
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