TPG Specialty Lending (TSLX) versus Its Competitors Critical Survey
TPG Specialty Lending (NYSE: TSLX) is one of 575 publicly-traded companies in the “Closed End Funds” industry, but how does it contrast to its peers? We will compare TPG Specialty Lending to similar businesses based on the strength of its dividends, institutional ownership, profitability, analyst recommendations, earnings, risk and valuation.
This table compares TPG Specialty Lending and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TPG Specialty Lending||60.77%||12.68%||7.41%|
|TPG Specialty Lending Competitors||-44.66%||6.74%||5.32%|
This is a summary of current ratings and target prices for TPG Specialty Lending and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TPG Specialty Lending||0||2||2||0||2.50|
|TPG Specialty Lending Competitors||192||1192||1413||14||2.44|
TPG Specialty Lending presently has a consensus target price of $20.25, suggesting a potential downside of 3.16%. As a group, “Closed End Funds” companies have a potential upside of 40.67%. Given TPG Specialty Lending’s peers higher possible upside, analysts clearly believe TPG Specialty Lending has less favorable growth aspects than its peers.
TPG Specialty Lending pays an annual dividend of $1.56 per share and has a dividend yield of 7.5%. TPG Specialty Lending pays out 71.9% of its earnings in the form of a dividend. As a group, “Closed End Funds” companies pay a dividend yield of 8.7% and pay out 87.0% of their earnings in the form of a dividend.
Insider and Institutional Ownership
62.7% of TPG Specialty Lending shares are held by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are held by institutional investors. 4.8% of TPG Specialty Lending shares are held by company insiders. Comparatively, 4.5% of shares of all “Closed End Funds” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Risk and Volatility
TPG Specialty Lending has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, TPG Specialty Lending’s peers have a beta of 0.55, suggesting that their average share price is 45% less volatile than the S&P 500.
Earnings and Valuation
This table compares TPG Specialty Lending and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|TPG Specialty Lending||N/A||N/A||9.64|
|TPG Specialty Lending Competitors||$57.58 million||$38.86 million||-0.15|
TPG Specialty Lending’s peers have higher revenue and earnings than TPG Specialty Lending. TPG Specialty Lending is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
TPG Specialty Lending beats its peers on 9 of the 14 factors compared.
About TPG Specialty Lending
TPG Specialty Lending, Inc. is an externally managed, closed-end, non-diversified management investment company. The Company is a specialty finance company focused on lending to middle-market companies. It seeks to generate current income primarily in the United States-domiciled middle-market companies through direct originations of senior secured loans and originations of mezzanine and unsecured loans and investments in corporate bonds and equity securities. The Company invests in first-lien debt, second-lien debt, mezzanine and unsecured debt and equity and other investments. Its first-lien debt may include standalone first-lien loans; last out first-lien loans; unitranche loans and secured corporate bonds. Its second-lien debt may include secured loans and secured corporate bonds, with a secondary priority behind first-lien debt. As of December 31, 2016, the Company’s portfolio was invested across 19 different industries. The Company’s investment advisor is TSL Advisers, LLC.
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