Progressive (NYSE:PGR) and BlackRock TCP Capital (NASDAQ:TCPC) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.
Insider & Institutional Ownership
80.2% of Progressive shares are owned by institutional investors. Comparatively, 45.6% of BlackRock TCP Capital shares are owned by institutional investors. 0.7% of Progressive shares are owned by insiders. Comparatively, 0.6% of BlackRock TCP Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Progressive pays an annual dividend of $1.12 per share and has a dividend yield of 1.8%. BlackRock TCP Capital pays an annual dividend of $1.44 per share and has a dividend yield of 10.1%. Progressive pays out 42.6% of its earnings in the form of a dividend. BlackRock TCP Capital pays out 72.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Volatility & Risk
Progressive has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, BlackRock TCP Capital has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.
This table compares Progressive and BlackRock TCP Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|BlackRock TCP Capital||31.79%||11.56%||6.00%|
This is a summary of current ratings and recommmendations for Progressive and BlackRock TCP Capital, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BlackRock TCP Capital||0||0||4||0||3.00|
Progressive currently has a consensus price target of $71.08, indicating a potential upside of 12.07%. BlackRock TCP Capital has a consensus price target of $17.13, indicating a potential upside of 20.18%. Given BlackRock TCP Capital’s stronger consensus rating and higher probable upside, analysts clearly believe BlackRock TCP Capital is more favorable than Progressive.
Earnings and Valuation
This table compares Progressive and BlackRock TCP Capital’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Progressive||$26.84 billion||1.38||$1.59 billion||$2.63||24.11|
|BlackRock TCP Capital||$175.97 million||4.76||$90.61 million||$1.99||7.16|
Progressive has higher revenue and earnings than BlackRock TCP Capital. BlackRock TCP Capital is trading at a lower price-to-earnings ratio than Progressive, indicating that it is currently the more affordable of the two stocks.
Progressive beats BlackRock TCP Capital on 11 of the 17 factors compared between the two stocks.
The Progressive Corporation, through its subsidiaries, provides personal and commercial auto insurance, residential property insurance, and other specialty property-casualty insurance and related services primarily in the United States. Its Personal Lines segment writes insurance for personal autos, and recreational and other vehicles. This segment's products include personal auto insurance; and special lines products, including insurance for motorcycles, ATVs, RVs, watercrafts, and snowmobiles. The company's Commercial Lines segment provides primary liability, physical damage, and other auto-related insurance for autos, vans, pick-up trucks, and dump trucks used by small businesses; tractors, trailers, and straight trucks primarily used by regional general freight and expeditor-type businesses, and non-fleet long-haul operators; dump trucks, log trucks, and garbage trucks used by dirt, sand and gravel, logging, and coal-type businesses; tow trucks and wreckers used in towing services and gas/service station businesses; and non-fleet taxis, black-car services, and airport taxis. Its Property segment provides residential property insurance for homeowners, other property owners, and renters, as well as offers personal umbrella insurance, and primary and excess flood insurance. The company also offers policy issuance and claims adjusting services; home, condominium, renters, and other insurance; and general liability and business owner's policies, and workers' compensation insurance. In addition, it offers reinsurance services. The Progressive Corporation sells its products and services through independent insurance agencies, as well as directly on Internet, and mobile devices, and over the phone. The company was founded in 1937 and is headquartered in Mayfield Village, Ohio.
About BlackRock TCP Capital
BlackRock TCP Capital Corp. is a business development company specializing in direct equity and debt investments in middle-market, senior secured loans, junior loans, originated loans, mezzanine, senior debt instruments, bonds, and secondary-market investments. It seeks to invest in the United States. The fund typically invests between $10 million and $35 million in companies with enterprise values between $100 million and $1500 million. It prefers to make equity investments in companies for an ownership stake.
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