Blackrock Tcp Capital (NASDAQ:TCPC – Get Free Report) and Barings Bdc (NYSE:BBDC – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.
Dividends
Blackrock Tcp Capital pays an annual dividend of $0.68 per share and has a dividend yield of 18.3%. Barings Bdc pays an annual dividend of $1.04 per share and has a dividend yield of 12.2%. Blackrock Tcp Capital pays out -45.6% of its earnings in the form of a dividend. Barings Bdc pays out 122.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Barings Bdc has increased its dividend for 3 consecutive years. Blackrock Tcp Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
Blackrock Tcp Capital has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Barings Bdc has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Blackrock Tcp Capital | 3 | 1 | 0 | 0 | 1.25 |
| Barings Bdc | 0 | 3 | 1 | 0 | 2.25 |
Blackrock Tcp Capital currently has a consensus price target of $3.50, suggesting a potential downside of 5.91%. Barings Bdc has a consensus price target of $9.50, suggesting a potential upside of 11.36%. Given Barings Bdc’s stronger consensus rating and higher probable upside, analysts clearly believe Barings Bdc is more favorable than Blackrock Tcp Capital.
Valuation and Earnings
This table compares Blackrock Tcp Capital and Barings Bdc”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Blackrock Tcp Capital | -$112.61 million | -2.77 | -$88.93 million | ($1.49) | -2.50 |
| Barings Bdc | $279.21 million | 3.20 | $101.92 million | $0.85 | 10.04 |
Barings Bdc has higher revenue and earnings than Blackrock Tcp Capital. Blackrock Tcp Capital is trading at a lower price-to-earnings ratio than Barings Bdc, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
44.1% of Barings Bdc shares are held by institutional investors. 0.4% of Blackrock Tcp Capital shares are held by company insiders. Comparatively, 0.6% of Barings Bdc shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Blackrock Tcp Capital and Barings Bdc’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Blackrock Tcp Capital | -66.92% | 14.30% | 5.47% |
| Barings Bdc | 32.45% | 10.08% | 4.33% |
Summary
Barings Bdc beats Blackrock Tcp Capital on 12 of the 17 factors compared between the two stocks.
About Blackrock Tcp Capital
BlackRock TCP Capital Corp. is a business development company specializing in direct equity and debt investments in middle-market, small businesses, debt securities, senior secured loans, junior loans, originated loans, mezzanine, senior debt instruments, bonds, and secondary-market investments. It typically invests in communication services, public relations services, television, wireless telecommunication services, apparel, textile mills, restaurants, retailing, energy, oil and gas extraction, Patent owners and Lessors, Federal and Federally- Sponsored Credit agencies, insurance, hospital and healthcare centers, Biotechnology, engineering services, heavy electrical equipment, tax accounting, scientific and related consulting services, charter freight air transportation, Information technology consulting, application hosting services, software diagram and design, computer aided design, communication equipment, electronics manufacturing equipment, computer components, chemicals. 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 including complex situations. It prefers to make equity investments in companies for an ownership stake.
About Barings Bdc
Barings BDC, Inc. is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. It seeks to invest primarily in senior secured loans, first lien debt, unitranche, second lien debt, subordinated debt, equity co-investments and senior secured private debt investments in private middle-market companies that operate across a wide range of industries. It specializes in mezzanine, leveraged buyouts, management buyouts, ESOPs, change of control transactions, acquisition financings, growth financing, and recapitalizations in lower middle market, mature, and later stage companies. It invests in manufacturing and distribution; business services and technology; transportation and logistics; consumer product and services. It invests in United States. It invests in companies with EBITDA of $10 million to $75 million, typically in private equity sponsor backed.
Receive News & Ratings for Blackrock Tcp Capital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Blackrock Tcp Capital and related companies with MarketBeat.com's FREE daily email newsletter.
