TCP Capital Corp. (NASDAQ: TCPC) is one of 553 public companies in the “Closed End Funds” industry, but how does it compare to its competitors? We will compare TCP Capital Corp. to related companies based off the strength of its analyst recommendations, dividends, institutional ownership, valuation, risk, profitability and earnings.

Profitability

This table compares TCP Capital Corp. and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TCP Capital Corp. 54.74% 12.93% 7.29%
TCP Capital Corp. Competitors 517.00% 7.80% 6.02%

Institutional & Insider Ownership

53.5% of TCP Capital Corp. shares are held by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are held by institutional investors. 0.6% of TCP Capital Corp. shares are held by company insiders. Comparatively, 4.2% of shares of all “Closed End Funds” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

TCP Capital Corp. has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, TCP Capital Corp.’s competitors have a beta of 0.56, indicating that their average stock price is 44% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for TCP Capital Corp. and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TCP Capital Corp. 0 0 7 0 3.00
TCP Capital Corp. Competitors 339 1470 1497 26 2.36

TCP Capital Corp. currently has a consensus target price of $18.20, suggesting a potential upside of 11.86%. All “Closed End Funds” companies have a potential upside of 43.59%. Given TCP Capital Corp.’s competitors higher possible upside, analysts clearly believe TCP Capital Corp. has less favorable growth aspects than its competitors.

Dividends

TCP Capital Corp. pays an annual dividend of $1.44 per share and has a dividend yield of 8.9%. TCP Capital Corp. pays out 92.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Closed End Funds” companies pay a dividend yield of 9.4% and pay out 92.9% of their earnings in the form of a dividend. TCP Capital Corp. lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares TCP Capital Corp. and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
TCP Capital Corp. N/A N/A 10.50
TCP Capital Corp. Competitors $57.20 million $39.05 million 0.17

TCP Capital Corp.’s competitors have higher revenue and earnings than TCP Capital Corp.. TCP Capital Corp. is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently the more expensive than other companies in its industry.

TCP Capital Corp. Company Profile

TCP Capital Corp. is an externally managed, closed-end, non-diversified management investment company. The Company’s investment objective is to achieve high total returns through current income and capital appreciation, with an emphasis on principal protection. It invests in the debt of middle-market companies, as well as small businesses, including senior secured loans, junior loans, mezzanine debt and bonds. Its investments may include an equity component and may make equity investments directly. It intends to focus on privately negotiated investments in debt of middle-market companies. It may make investments of all kinds and at all levels of the capital structure, including in equity interests, such as preferred or common stock and warrants or options received in connection with its debt investments. As of December 31, 2016, its investment portfolio consisted of 90 portfolio companies. Tennenbaum Capital Partners, LLC is the investment manager and advisor of the Company.

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