Critical Contrast: Federal Agricultural Mortgage (AGM.A) & TCG BDC (CGBD)
Federal Agricultural Mortgage (NYSE: AGM.A) and TCG BDC (NASDAQ:CGBD) are both small-cap financials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.
This is a breakdown of recent ratings and target prices for Federal Agricultural Mortgage and TCG BDC, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Federal Agricultural Mortgage||0||0||0||0||N/A|
This table compares Federal Agricultural Mortgage and TCG BDC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Federal Agricultural Mortgage||21.05%||14.97%||0.50%|
Insider and Institutional Ownership
9.1% 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Federal Agricultural Mortgage and TCG BDC’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Federal Agricultural Mortgage||N/A||N/A||N/A||$7.43||9.57|
|TCG BDC||$110.97 million||10.35||$69.80 million||N/A||N/A|
TCG BDC has higher revenue and earnings than Federal Agricultural Mortgage.
TCG BDC pays an annual dividend of $1.48 per share and has a dividend yield of 8.0%. Federal Agricultural Mortgage does not pay a dividend.
TCG BDC beats Federal Agricultural Mortgage on 8 of the 9 factors compared between the two stocks.
About Federal Agricultural Mortgage
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).
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.
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