Critical Review: Tri-Continental (NYSE:TY) vs. Sutter Rock Capital (NYSE:SSSS)
Tri-Continental (NYSE:TY) and Sutter Rock Capital (NASDAQ:SSSS) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.
This table compares Tri-Continental and Sutter Rock Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sutter Rock Capital||440.27%||-7.67%||-5.11%|
This is a breakdown of current ratings and target prices for Tri-Continental and Sutter Rock Capital, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sutter Rock Capital||0||0||2||0||3.00|
Sutter Rock Capital has a consensus price target of $15.50, indicating a potential upside of 21.28%. Given Sutter Rock Capital’s higher probable upside, analysts plainly believe Sutter Rock Capital is more favorable than Tri-Continental.
Institutional & Insider Ownership
9.1% of Tri-Continental shares are owned by institutional investors. Comparatively, 16.1% of Sutter Rock Capital shares are owned by institutional investors. 8.7% of Tri-Continental shares are owned by insiders. Comparatively, 1.2% of Sutter Rock Capital 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.
Earnings & Valuation
This table compares Tri-Continental and Sutter Rock Capital’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sutter Rock Capital||$1.50 million||142.75||$23.95 million||($0.49)||-26.08|
Sutter Rock Capital has higher revenue and earnings than Tri-Continental.
Sutter Rock Capital beats Tri-Continental on 5 of the 8 factors compared between the two stocks.
Tri-Continental Corporation is a closed ended equity mutual fund launched and managed by Columbia Management Investment Advisers, LLC. It primarily invests in the public equity markets of the United States. The fund invests in stocks of companies that operate across diversified sectors. It seeks to invest in stocks of large-cap companies. The fund benchmarks the performance of its portfolio against S&P 500 Index. Tri-Continental Corporation was formed in January 1929 and is domiciled in the United States.
About Sutter Rock Capital
Sutter Rock Capital Corp. is specializing in growth capital, B round and beyond, emerging growth, and pre-IPO investments in late stage venture-backed private companies. It makes direct (primary rounds) investments in companies and also makes secondary direct investments. The fund may also invest in select publicly-traded equity securities of companies that otherwise meet its investment criteria. It seeks to invest in the technology subsectors of social/mobile marketplaces, sustainability, cloud computing and big data, social media, mobile computing and applications, software as a service, Internet commerce, green technology and education technology. The fund invests in the form of non-controlling equity and equity-related investments, including common stock, warrants, preferred stock and similar forms of senior equity, which may or may not be convertible into a portfolio company's common equity, and convertible debt securities with a significant equity component. It will invest in companies based in United States. It generally invests in companies with a market value of over $100 million. Typically, the firm exits its position within 18 months of going public, or 12 months after any relevant lock-up has expired.
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