TriplePoint Venture Growth BDC (NYSE: TPVG) and Eagle Point Credit (NYSE:ECC) are both small-cap financials companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.
Insider & Institutional Ownership
31.6% of TriplePoint Venture Growth BDC shares are held by institutional investors. Comparatively, 57.1% of Eagle Point Credit shares are held by institutional investors. 1.3% of TriplePoint Venture Growth BDC shares are held by company insiders. Comparatively, 0.6% of Eagle Point Credit shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and recommmendations for TriplePoint Venture Growth BDC and Eagle Point Credit, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TriplePoint Venture Growth BDC||0||1||1||0||2.50|
|Eagle Point Credit||0||0||4||0||3.00|
TriplePoint Venture Growth BDC currently has a consensus price target of $14.00, suggesting a potential upside of 18.44%. Eagle Point Credit has a consensus price target of $21.13, suggesting a potential upside of 16.91%. Given TriplePoint Venture Growth BDC’s higher possible upside, analysts clearly believe TriplePoint Venture Growth BDC is more favorable than Eagle Point Credit.
Volatility & Risk
TriplePoint Venture Growth BDC has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Eagle Point Credit has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500.
Earnings and Valuation
This table compares TriplePoint Venture Growth BDC and Eagle Point Credit’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TriplePoint Venture Growth BDC||$43.63 million||4.80||$11.12 million||N/A||N/A|
|Eagle Point Credit||$65.29 million||5.20||$31.13 million||N/A||N/A|
Eagle Point Credit has higher revenue and earnings than TriplePoint Venture Growth BDC.
This table compares TriplePoint Venture Growth BDC and Eagle Point Credit’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TriplePoint Venture Growth BDC||43.72%||12.05%||5.99%|
|Eagle Point Credit||47.68%||10.46%||7.06%|
TriplePoint Venture Growth BDC pays an annual dividend of $1.44 per share and has a dividend yield of 12.2%. Eagle Point Credit pays an annual dividend of $2.40 per share and has a dividend yield of 13.3%.
Eagle Point Credit beats TriplePoint Venture Growth BDC on 10 of the 14 factors compared between the two stocks.
About TriplePoint Venture Growth BDC
TriplePoint Venture Growth BDC Corp. is a closed-end, non-diversified management investment company. The Company’s investment objective is to maximize its total return to stockholders primarily in the form of current income and, to a lesser extent, capital appreciation by primarily lending with warrants to venture growth stage companies focused in technology, life sciences and other high growth industries, which are backed by TriplePoint Capital LLC’s (TPC) select group of venture capital investors. The Company targets investment opportunities in venture growth stage companies backed by venture capital investors. The Company originates and invests primarily in loans that have a secured collateral position and are used by venture growth stage companies to finance their continued expansion and growth, equipment financings and, on a select basis, revolving loans. The Company is managed by TPVG Advisers LLC.
About Eagle Point Credit
Eagle Point Credit Company Inc. is a non-diversified, closed-end management investment company. The Company’s primary investment objective is to generate high current income, with a secondary objective to generate capital appreciation. The Company primarily invests in equity and junior debt tranches of collateralized loan obligations (CLOs) that are collateralized by a portfolio consisting primarily of the below investment grade United States senior secured loans. It may also invest in other securities and instruments related to these investments. The Company’s portfolio includes its investments in various industries, such as business equipment and services; healthcare; electronics/electrical; leisure goods/activities/movies; retailers (except food and drug); chemicals and plastics; telecommunications; financial intermediaries, and utilities. The Company’s advisor is Eagle Point Credit Management LLC.
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