Head to Head Survey: Springleaf Holdings (LEAF) & Triangle Capital Corporation (TCAP)
Triangle Capital Corporation (NYSE: TCAP) and Springleaf Holdings (NASDAQ:LEAF) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitabiliy, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.
Triangle Capital Corporation pays an annual dividend of $1.80 per share and has a dividend yield of 10.2%. Springleaf Holdings 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.
Earnings and Valuation
This table compares Triangle Capital Corporation and Springleaf Holdings’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Triangle Capital Corporation||$117.21 million||7.21||$95.78 million||$0.76||23.33|
Triangle Capital Corporation has higher revenue and earnings than Springleaf Holdings.
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 insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Triangle Capital Corporation and Springleaf Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Triangle Capital Corporation||24.76%||10.92%||5.84%|
This is a summary of current ratings for Triangle Capital Corporation and Springleaf Holdings, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Triangle Capital Corporation||0||1||5||0||2.83|
Triangle Capital Corporation presently has a consensus price target of $21.60, indicating a potential upside of 21.83%. Springleaf Holdings has a consensus price target of $13.00, indicating a potential downside of 73.29%. Given Triangle Capital Corporation’s higher possible upside, equities research analysts clearly believe Triangle Capital Corporation is more favorable than Springleaf Holdings.
Triangle Capital Corporation beats Springleaf Holdings on 9 of the 11 factors compared between the two stocks.
About Triangle Capital Corporation
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.
About Springleaf Holdings
Springleaf Holdings, Inc. (SHI) is a consumer financial services holding company. The Company provides responsible loan products to customers through its branch network and through its centralized operations. The Company operates its business through three segments: Consumer and Insurance; Acquisitions and Servicing, and Real Estate. The Company originates and services secured and unsecured personal loans and offer voluntary credit insurance and related products through its branch network and its centralized operations. The Company pursues strategic acquisitions of loan portfolios through its Springleaf Acquisitions division. Springleaf Finance, Inc. (SFI) is the wholly owned subsidiary of the Company. SFI’s subsidiary is Springleaf Finance Corporation (SFC), a financial services holding company with subsidiaries engaged in the consumer finance and credit insurance businesses.
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