Head-To-Head Review: Tortoise Energy Infrastructure Corporation (TYG) and TCP Capital Corp. (TCPC)
Tortoise Energy Infrastructure Corporation (NYSE: TYG) and TCP Capital Corp. (NASDAQ:TCPC) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.
This table compares Tortoise Energy Infrastructure Corporation and TCP Capital Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tortoise Energy Infrastructure Corporation||N/A||N/A||N/A|
|TCP Capital Corp.||54.74%||12.93%||7.29%|
Tortoise Energy Infrastructure Corporation pays an annual dividend of $2.62 per share and has a dividend yield of 10.0%. TCP Capital Corp. pays an annual dividend of $1.44 per share and has a dividend yield of 9.0%. 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.
This is a breakdown of recent ratings and price targets for Tortoise Energy Infrastructure Corporation and TCP Capital Corp., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tortoise Energy Infrastructure Corporation||0||0||1||0||3.00|
|TCP Capital Corp.||0||0||6||0||3.00|
Tortoise Energy Infrastructure Corporation presently has a consensus target price of $34.00, indicating a potential upside of 30.27%. TCP Capital Corp. has a consensus target price of $18.25, indicating a potential upside of 13.85%. Given Tortoise Energy Infrastructure Corporation’s higher probable upside, equities research analysts plainly believe Tortoise Energy Infrastructure Corporation is more favorable than TCP Capital Corp..
Volatility & Risk
Tortoise Energy Infrastructure Corporation has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, TCP Capital Corp. has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.
Insider and Institutional Ownership
30.3% of Tortoise Energy Infrastructure Corporation shares are owned by institutional investors. Comparatively, 53.4% of TCP Capital Corp. shares are owned by institutional investors. 0.3% of Tortoise Energy Infrastructure Corporation shares are owned by insiders. Comparatively, 0.6% of TCP Capital Corp. shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Tortoise Energy Infrastructure Corporation and TCP Capital Corp.’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Tortoise Energy Infrastructure Corporation||N/A||N/A||N/A||N/A||N/A|
|TCP Capital Corp.||N/A||N/A||N/A||$1.55||10.34|
TCP Capital Corp. beats Tortoise Energy Infrastructure Corporation on 6 of the 10 factors compared between the two stocks.
Tortoise Energy Infrastructure Corporation Company Profile
Tortoise Energy Infrastructure Corporation (the Fund) is a non-diversified, closed-end management investment company. The Fund seeks a high level of total return with a focus on current distributions paid to stockholders. The Fund invests primarily in equity securities of master limited partnerships (MLPs) and their affiliates that transport, gather, process or store natural gas, natural gas liquids (NGLs), crude oil and refined petroleum products. Under normal circumstances, the Fund invests at least 90% of its total assets (including assets obtained through leverage) in securities of energy infrastructure companies and at least 70% of its total assets in equity securities of MLPs. The Fund may invest up to 30% of its total assets in restricted securities, primarily through direct placements. The Fund may invest up to 25% of its total assets in debt securities, including those rated below investment grade. Tortoise Capital Advisors, L.L.C. is the investment advisor of the Fund.
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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