Beneficient (NASDAQ:BENF) and TriplePoint Venture Growth BDC (NYSE:TPVG) Critical Comparison

TriplePoint Venture Growth BDC (NYSE:TPVG) and Beneficient (NASDAQ:BENF) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Risk and Volatility

TriplePoint Venture Growth BDC has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Beneficient has a beta of -0.01, suggesting that its stock price is 101% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for TriplePoint Venture Growth BDC and Beneficient, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TriplePoint Venture Growth BDC	2	3	0	0	1.60
Beneficient	1	0	0	0	1.00

TriplePoint Venture Growth BDC currently has a consensus price target of $5.17, indicating a potential upside of 20.86%. Given TriplePoint Venture Growth BDC’s stronger consensus rating and higher probable upside, equities analysts clearly believe TriplePoint Venture Growth BDC is more favorable than Beneficient.

Institutional & Insider Ownership

12.8% of TriplePoint Venture Growth BDC shares are held by institutional investors. Comparatively, 90.6% of Beneficient shares are held by institutional investors. 1.5% of TriplePoint Venture Growth BDC shares are held by insiders. Comparatively, 10.1% of Beneficient shares are held by 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.

Profitability

This table compares TriplePoint Venture Growth BDC and Beneficient’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TriplePoint Venture Growth BDC	44.58%	10.68%	4.58%
Beneficient	N/A	N/A	-19.31%

Earnings & Valuation

This table compares TriplePoint Venture Growth BDC and Beneficient”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TriplePoint Venture Growth BDC	$45.91 million	3.79	$49.21 million	$0.99	4.32
Beneficient	-$14.34 million	-0.86	-$87.43 million	($7.11)	-0.11

TriplePoint Venture Growth BDC has higher revenue and earnings than Beneficient. Beneficient is trading at a lower price-to-earnings ratio than TriplePoint Venture Growth BDC, indicating that it is currently the more affordable of the two stocks.

Summary

TriplePoint Venture Growth BDC beats Beneficient on 11 of the 13 factors compared between the two stocks.

About TriplePoint Venture Growth BDC

TriplePoint Venture Growth BDC Corp. is a business development company specializing investments in venture capital-backed companies at the growth stage investments. It also provides debt financing to venture growth space companies which includes growth capital loans, secured and customized 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 targeted returns between 10% and 18%. It does not take board seat in the company.

About Beneficient

Beneficient, a technology-enabled financial services company, provides liquidity solutions and related trustee, custody and trust administrative services to participants in the alternative asset industry in the United States. It operates through Ben Liquidity, Ben Custody, and Customer ExAlt Trusts segments. The company offers Ben AltAccess platform for secure, online, and end-to-end delivery of each of the Ben business unit products and services, including upload documents, and work through tasks, and complete their transactions with standardized transaction agreements. It also provides Ben Liquidity, which offers alternative asset liquidity and fiduciary financing products; Ben Custody that provides custody and trust administration services to trustees and document custodian services to customers; and Ben Markets, which provides broker-dealer and transfer agency services. In addition, the company provides Ben Insurance Services, which offers insurance products and services; and Ben Data that provides data collection, evaluation, and analytics products and services. It serves individual and institutional investors, wealth advisors, and general partners. Beneficient is based in Dallas, Texas.