JG Wentworth (NYSE: JGW) and Triangle Capital Corporation (NYSE:TCAP) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitabiliy, valuation, risk, institutional ownership and dividends.

Insider and Institutional Ownership

31.2% of Triangle Capital Corporation shares are held by institutional investors. 4.1% of Triangle Capital Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares JG Wentworth and Triangle Capital Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
JG Wentworth -12.80% N/A -0.78%
Triangle Capital Corporation 24.76% 10.92% 5.84%

Dividends

Triangle Capital Corporation pays an annual dividend of $1.80 per share and has a dividend yield of 10.2%. JG Wentworth does not pay a dividend. Triangle Capital Corporation pays out 236.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of current ratings and target prices for JG Wentworth and Triangle Capital Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JG Wentworth 0 0 0 0 N/A
Triangle Capital Corporation 0 2 4 0 2.67

Triangle Capital Corporation has a consensus price target of $21.60, indicating a potential upside of 21.83%. Given Triangle Capital Corporation’s higher probable upside, analysts clearly believe Triangle Capital Corporation is more favorable than JG Wentworth.

Valuation and Earnings

This table compares JG Wentworth and Triangle Capital Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
JG Wentworth N/A N/A N/A N/A N/A
Triangle Capital Corporation $117.21 million 7.21 $95.78 million $0.76 23.33

Triangle Capital Corporation has higher revenue and earnings than JG Wentworth.

Summary

Triangle Capital Corporation beats JG Wentworth on 9 of the 10 factors compared between the two stocks.

JG Wentworth Company Profile

The J.G. Wentworth Company is a diversified financial services company. The Company focuses on providing solutions to consumers in need of cash. The Company conducts its operations through two segments: Structured Settlements and Annuity Purchasing (Structured Settlements), and Home Lending. The Structured Settlements segment provides liquidity to individuals with various financial assets, such as structured settlements, annuities, and lottery winnings, by either purchasing these financial assets for a lump-sum payment, issuing installment obligations payable over time, or serving as a broker to other purchasers of those financial assets. The Home Lending segment is primarily engaged in retail lending, originating primarily Federal Housing Administration (FHA), Veterans Administration (VA) and conventional loans. The Structured Settlements segment operates with various brands, including J.G. Wentworth and Peachtree.

Triangle Capital Corporation Company Profile

Triangle Capital Corporation is an internally managed, non-diversified closed-end management investment company. The Company is a specialty finance company that provides customized financing to lower middle market companies located primarily in the United States. The Company’s investment objective is to seek attractive returns by generating current income from its debt investments and capital appreciation from its equity-related investments. The Company invests primarily in subordinated debt securities secured by second lien security interests in portfolio company assets, coupled with equity interests. The Company also invests in senior debt securities secured by first lien security interests in portfolio company assets. The Company’s portfolio includes its investments in various industry sectors, such as baby products; manufacturer and distributor for independent artists and authors; loan origination software solutions provider, and restaurant.

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