TCG BDC (NASDAQ: CGBD) and INTL Fcstone (NASDAQ:INTL) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.
Insider and Institutional Ownership
9.1% of TCG BDC shares are owned by institutional investors. Comparatively, 65.0% of INTL Fcstone shares are owned by institutional investors. 0.1% of TCG BDC shares are owned by insiders. Comparatively, 20.7% of INTL Fcstone shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares TCG BDC and INTL Fcstone’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TCG BDC||$110.97 million||10.34||$69.80 million||N/A||N/A|
|INTL Fcstone||$29.42 billion||0.03||$6.40 million||$0.33||131.97|
TCG BDC has higher earnings, but lower revenue than INTL Fcstone.
This is a summary of recent ratings for TCG BDC and INTL Fcstone, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TCG BDC presently has a consensus price target of $19.13, suggesting a potential upside of 3.66%. Given TCG BDC’s higher probable upside, analysts plainly believe TCG BDC is more favorable than INTL Fcstone.
This table compares TCG BDC and INTL Fcstone’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
TCG BDC pays an annual dividend of $1.48 per share and has a dividend yield of 8.0%. INTL Fcstone does not pay a dividend.
TCG BDC beats INTL Fcstone on 8 of the 11 factors compared between the two stocks.
TCG BDC Company Profile
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.
INTL Fcstone Company Profile
INTL Fcstone Inc. is a financial services company. The Company provides financial products, and advisory and execution service. The Company operates through five segments: Commercial Hedging, Global Payments, Securities, Physical Commodities, and Clearing and Execution Services (CES). The Commercial Hedging segment serves its commercial clients through its team of risk management consultants. The Global Payments segment provides global payment solutions to banks and commercial businesses, as well as charities and non-governmental organizations and government organizations. The Securities segment provides solutions that facilitate cross-border trading. The Physical Commodities segment consists of its physical precious metals trading and physical agricultural and energy commodity businesses. The CES segment seeks to provide clearing and execution of exchange-traded futures and options for the institutional and trader market segments.
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