Stans Energy (OTCMKTS:HREEF) and Triplepoint Venture Growth BDC (NYSE:TPVG) are both small-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Dividends

Triplepoint Venture Growth BDC pays an annual dividend of $1.44 per share and has a dividend yield of 11.8%. Stans Energy does not pay a dividend. Triplepoint Venture Growth BDC pays out 89.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Stans Energy has a beta of 3.04, suggesting that its stock price is 204% more volatile than the S&P 500. Comparatively, Triplepoint Venture Growth BDC has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Stans Energy and Triplepoint Venture Growth BDC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stans Energy 0 0 0 0 N/A
Triplepoint Venture Growth BDC 0 2 2 0 2.50

Triplepoint Venture Growth BDC has a consensus price target of $14.08, indicating a potential upside of 15.72%. Given Triplepoint Venture Growth BDC’s higher probable upside, analysts clearly believe Triplepoint Venture Growth BDC is more favorable than Stans Energy.

Valuation and Earnings

This table compares Stans Energy and Triplepoint Venture Growth BDC’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stans Energy N/A N/A N/A N/A N/A
Triplepoint Venture Growth BDC $51.51 million 5.84 $19.22 million $1.61 7.56

Triplepoint Venture Growth BDC has higher revenue and earnings than Stans Energy.

Profitability

This table compares Stans Energy and Triplepoint Venture Growth BDC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stans Energy N/A N/A N/A
Triplepoint Venture Growth BDC 53.66% 11.43% 5.98%

Insider and Institutional Ownership

0.0% of Stans Energy shares are owned by institutional investors. Comparatively, 32.8% of Triplepoint Venture Growth BDC shares are owned by institutional investors. 1.8% of Triplepoint Venture Growth BDC shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Triplepoint Venture Growth BDC beats Stans Energy on 9 of the 11 factors compared between the two stocks.

Stans Energy Company Profile

Stans Energy Corp. operates as a resource development company with a focus on rare earth and specialty metal properties in Canada, the Kyrgyz Republic, and Russia. It primarily explores for uranium, rare earth elements, gold, and base metals. Stans Energy Corp. was incorporated in 2005 and is headquartered in Toronto, Canada.

Triplepoint Venture Growth BDC Company Profile

TriplePoint Venture Growth BDC Corp is a business development company specializing investments in growth stage. It also provides debt financing to venture growth space companies which includes growth capital loans, equipment financings, revolving loans, and direct equity investments. The fund seeks to invest in e-commerce, entertainment, technology and life sciences sector. Within technology the areas of focus include: Security, wireless communication equipments, network system and software, business applications software, conferencing equipments/services .big data, cloud computing, data storage, electronics, energy efficiency, hardware, information services, internet and media, networking, semiconductors, software, software as a service, and other technology related subsectors and within life sciences the areas of focus include: biotechnology, bio fuels/bio mass, diagnostic testing and bioinformatics, drug delivery, drug discovery, healthcare information systems, healthcare services, medical, surgical and therapeutic devices, pharmaceuticals and other life science related subsectors. Within growth capital loans it invests between $5 million and $50 million, for equipment financings it invests between $5 million and $25 million, for revolving loans it invests between $1 million and $25 million, and for direct equity investments it may invest between $0.1 million and $5 million (generally not exceeding 5% of the company's total equity). The debt financing products are typically structured as lines of credit and it invests through warrants and secured loans. It does not take board seat in the company.

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