TriplePoint Venture Growth BDC Corp. (NYSE: TPVG) and Medley Capital Corporation (NYSE:MCC) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Valuation & Earnings

This table compares TriplePoint Venture Growth BDC Corp. and Medley Capital Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TriplePoint Venture Growth BDC Corp. N/A N/A N/A $1.89 6.92
Medley Capital Corporation N/A N/A N/A ($0.10) -58.60

Medley Capital Corporation is trading at a lower price-to-earnings ratio than TriplePoint Venture Growth BDC Corp., indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

TriplePoint Venture Growth BDC Corp. has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Medley Capital Corporation has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.

Dividends

TriplePoint Venture Growth BDC Corp. pays an annual dividend of $1.44 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 10.9%. TriplePoint Venture Growth BDC Corp. pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Medley Capital Corporation pays out -640.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for TriplePoint Venture Growth BDC Corp. and Medley Capital Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TriplePoint Venture Growth BDC Corp. 0 1 0 0 2.00
Medley Capital Corporation 0 5 0 0 2.00

TriplePoint Venture Growth BDC Corp. presently has a consensus target price of $14.00, suggesting a potential upside of 7.03%. Medley Capital Corporation has a consensus target price of $7.00, suggesting a potential upside of 19.45%. Given Medley Capital Corporation’s higher possible upside, analysts clearly believe Medley Capital Corporation is more favorable than TriplePoint Venture Growth BDC Corp..

Insider and Institutional Ownership

38.3% of TriplePoint Venture Growth BDC Corp. shares are held by institutional investors. Comparatively, 29.6% of Medley Capital Corporation shares are held by institutional investors. 1.3% of TriplePoint Venture Growth BDC Corp. 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, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares TriplePoint Venture Growth BDC Corp. and Medley Capital Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TriplePoint Venture Growth BDC Corp. 56.60% 13.05% 6.50%
Medley Capital Corporation -6.07% 8.04% 3.92%

Summary

TriplePoint Venture Growth BDC Corp. beats Medley Capital Corporation on 7 of the 11 factors compared between the two stocks.

TriplePoint Venture Growth BDC Corp. Company Profile

TriplePoint Venture Growth BDC Corp. is a closed-end, non-diversified management investment company. The Company’s investment objective is to maximize its total return to stockholders primarily in the form of current income and, to a lesser extent, capital appreciation by primarily lending with warrants to venture growth stage companies focused in technology, life sciences and other high growth industries, which are backed by TriplePoint Capital LLC’s (TPC) select group of venture capital investors. The Company targets investment opportunities in venture growth stage companies backed by venture capital investors. The Company originates and invests primarily in loans that have a secured collateral position and are used by venture growth stage companies to finance their continued expansion and growth, equipment financings and, on a select basis, revolving loans. The Company is managed by TPVG Advisers LLC.

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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