Tortoise Energy Infrastructure Corporation (NYSE: TYG) and Medley Capital Corporation (NYSE:MCC) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitabiliy, dividends, analyst recommendations, earnings, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for Tortoise Energy Infrastructure Corporation and Medley Capital Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tortoise Energy Infrastructure Corporation 0 1 0 0 2.00
Medley Capital Corporation 0 5 0 0 2.00

Tortoise Energy Infrastructure Corporation presently has a consensus target price of $35.00, indicating a potential upside of 17.29%. Medley Capital Corporation has a consensus target price of $7.38, indicating a potential upside of 18.95%. Given Medley Capital Corporation’s higher probable upside, analysts plainly believe Medley Capital Corporation is more favorable than Tortoise Energy Infrastructure Corporation.

Valuation & Earnings

This table compares Tortoise Energy Infrastructure Corporation and Medley Capital Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tortoise Energy Infrastructure Corporation N/A N/A N/A N/A N/A
Medley Capital Corporation N/A N/A N/A $0.10 62.01

Institutional and Insider Ownership

34.1% of Tortoise Energy Infrastructure Corporation shares are held by institutional investors. Comparatively, 38.6% of Medley Capital Corporation shares are held by institutional investors. 0.3% of Tortoise Energy Infrastructure Corporation shares are held by insiders. Comparatively, 8.7% of Medley Capital Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Tortoise Energy Infrastructure Corporation pays an annual dividend of $3.28 per share and has a dividend yield of 11.0%. Medley Capital Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 10.3%. Medley Capital Corporation pays out 640.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Tortoise Energy Infrastructure Corporation and Medley Capital Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tortoise Energy Infrastructure Corporation N/A N/A N/A
Medley Capital Corporation 4.60% 8.10% 4.00%

Risk and Volatility

Tortoise Energy Infrastructure Corporation has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Medley Capital Corporation has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Summary

Medley Capital Corporation beats Tortoise Energy Infrastructure Corporation on 6 of the 9 factors compared between the two stocks.

Tortoise Energy Infrastructure Corporation Company Profile

Tortoise Energy Infrastructure Corporation (the Fund) is a non-diversified, closed-end management investment company. The Fund seeks a high level of total return with a focus on current distributions paid to stockholders. The Fund invests primarily in equity securities of master limited partnerships (MLPs) and their affiliates that transport, gather, process or store natural gas, natural gas liquids (NGLs), crude oil and refined petroleum products. Under normal circumstances, the Fund invests at least 90% of its total assets (including assets obtained through leverage) in securities of energy infrastructure companies and at least 70% of its total assets in equity securities of MLPs. The Fund may invest up to 30% of its total assets in restricted securities, primarily through direct placements. The Fund may invest up to 25% of its total assets in debt securities, including those rated below investment grade. Tortoise Capital Advisors, L.L.C. is the investment advisor of the Fund.

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.

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