Investcorp Credit Management BDC (NASDAQ:ICMB – Get Free Report) and Blackrock Tcp Capital (NASDAQ:TCPC – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.
Profitability
This table compares Investcorp Credit Management BDC and Blackrock Tcp Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Investcorp Credit Management BDC | -118.71% | 2.26% | 0.75% |
| Blackrock Tcp Capital | -66.92% | 14.30% | 5.47% |
Analyst Recommendations
This is a summary of recent ratings and price targets for Investcorp Credit Management BDC and Blackrock Tcp Capital, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Investcorp Credit Management BDC | 1 | 0 | 0 | 0 | 1.00 |
| Blackrock Tcp Capital | 3 | 1 | 0 | 0 | 1.25 |
Valuation and Earnings
This table compares Investcorp Credit Management BDC and Blackrock Tcp Capital”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Investcorp Credit Management BDC | $17.40 million | 0.75 | -$8.85 million | ($1.37) | -0.66 |
| Blackrock Tcp Capital | $201.79 million | 1.43 | -$88.93 million | ($1.49) | -2.32 |
Investcorp Credit Management BDC has higher earnings, but lower revenue than Blackrock Tcp Capital. Blackrock Tcp Capital is trading at a lower price-to-earnings ratio than Investcorp Credit Management BDC, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Investcorp Credit Management BDC has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Blackrock Tcp Capital has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.
Institutional and Insider Ownership
7.8% of Investcorp Credit Management BDC shares are owned by institutional investors. 1.3% of Investcorp Credit Management BDC shares are owned by company insiders. Comparatively, 0.4% of Blackrock Tcp Capital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Blackrock Tcp Capital beats Investcorp Credit Management BDC on 8 of the 13 factors compared between the two stocks.
About Investcorp Credit Management BDC
Investcorp Credit Management BDC, Inc. is a business development company specializing in loan, mezzanine, middle market, growth capital, acquisitions, market/product expansion, organic growth, refinancings and recapitalization investments. It also selectively invests in mezzanine loans/structured equity and in the equity of portfolio companies through warrants and other instruments, in most cases taking such upside participation interests as part of a broader investment relationship. The fund typically invests in United States and Europe. Within United States, the fund seeks to invest in Midatlantic, Midwest, Northeast, Southeast, and West Coast regions. The fund primarily invests in cable and satellites; consumer services; healthcare equipment and services; industrials; information technology; telecommunication services; and utilities sectors. The fund seeks to invest between $5 million to $25 million in companies that have annual revenues of at least $50 million with EBITDA at least $15 million.
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.
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