TCG BDC (NASDAQ: CGBD) and Federal Agricultural Mortgage Corp. (NYSE:AGM.A) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Dividends

TCG BDC pays an annual dividend of $1.48 per share and has a dividend yield of 8.0%. Federal Agricultural Mortgage Corp. does not pay a dividend.

Insider and Institutional Ownership

7.9% of TCG BDC shares are owned by institutional investors. 0.1% of TCG BDC shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares TCG BDC and Federal Agricultural Mortgage Corp.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
TCG BDC $110.97 million 10.35 $69.80 million N/A N/A
Federal Agricultural Mortgage Corp. N/A N/A N/A $7.43 9.24

TCG BDC has higher revenue and earnings than Federal Agricultural Mortgage Corp..

Analyst Recommendations

This is a summary of current ratings for TCG BDC and Federal Agricultural Mortgage Corp., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TCG BDC 0 0 4 0 3.00
Federal Agricultural Mortgage Corp. 0 0 0 0 N/A

TCG BDC presently has a consensus target price of $19.13, suggesting a potential upside of 3.60%. Given TCG BDC’s higher probable upside, research analysts plainly believe TCG BDC is more favorable than Federal Agricultural Mortgage Corp..

Profitability

This table compares TCG BDC and Federal Agricultural Mortgage Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TCG BDC 50.18% 8.82% 4.94%
Federal Agricultural Mortgage Corp. 21.05% 14.97% 0.50%

Summary

TCG BDC beats Federal Agricultural Mortgage Corp. on 8 of the 9 factors compared between the two stocks.

About TCG BDC

TCG BDC, Inc., formerly Carlyle GMS Finance, Inc., is a managed and non-diversified closed-end investment company. The Company is focused on lending to middle market companies. The Company’s investment objective is to generate current income and capital appreciation primarily through debt investments in the United States and middle market companies. The Company seeks to achieve its investment objective primarily through direct originations of secured debt, including first lien senior secured loans and second lien senior secured loans. The Company’s first lien senior secured loans include stand-alone first lien loans, first lien/last out loans, and unitranche loans. Second lien senior secured loans (Middle Market Senior Loans), with the balance of its assets invested yielding in higher investments include unsecured debt, mezzanine debt and investments in equities. The Company’s investment adviser is Carlyle GMS Investment Management L.L.C.

About Federal Agricultural Mortgage Corp.

Federal Agricultural Mortgage Corporation (Farmer Mac) provides a secondary market for a range of loans made to borrowers in rural America. The Company’s segments include Farm & Ranch, USDA Guarantees, Rural Utilities, Institutional Credit and Corporate. Its secondary market activities are purchasing eligible loans directly from lenders; providing advances against eligible loans by purchasing obligations secured by those loans; securitizing assets and guaranteeing the payment of principal and interest on the resulting securities that represent interests in, or obligations secured by, pools of eligible loans; and issuing long-term standby purchase commitments (LTSPCs) for eligible loans. The loans eligible for the secondary market provided by Farmer Mac include mortgage loans secured by first liens on agricultural real estate, including part-time farms and rural housing (comprising the assets eligible for the Farm & Ranch line of business).

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