Reviewing Site Centers (NYSE:SITC) and Trinity Capital (NASDAQ:TRIN)

Trinity Capital (NASDAQ:TRIN) and Site Centers (NYSE:SITC) are both small-cap 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

24.6% of Trinity Capital shares are owned by institutional investors. Comparatively, 88.7% of Site Centers shares are owned by institutional investors. 4.3% of Trinity Capital shares are owned by insiders. Comparatively, 0.2% of Site Centers 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.

Analyst Ratings

This is a summary of current ratings and recommmendations for Trinity Capital and Site Centers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trinity Capital	1	1	4	1	2.71
Site Centers	2	1	0	0	1.33

Trinity Capital currently has a consensus price target of $16.67, indicating a potential downside of 6.12%. Site Centers has a consensus price target of $3.50, indicating a potential upside of 20.07%. Given Site Centers’ higher probable upside, analysts clearly believe Site Centers is more favorable than Trinity Capital.

Valuation & Earnings

This table compares Trinity Capital and Site Centers”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trinity Capital	$216.31 million	7.77	$135.60 million	$1.75	10.14
Site Centers	$71.27 million	2.15	$177.86 million	$2.41	1.21

Site Centers has lower revenue, but higher earnings than Trinity Capital. Site Centers is trading at a lower price-to-earnings ratio than Trinity Capital, indicating that it is currently the more affordable of the two stocks.

Dividends

Trinity Capital pays an annual dividend of $2.04 per share and has a dividend yield of 11.5%. Site Centers pays an annual dividend of $0.52 per share and has a dividend yield of 17.8%. Trinity Capital pays out 116.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Site Centers pays out 21.6% of its earnings in the form of a dividend. Trinity Capital has raised its dividend for 1 consecutive years. Site Centers is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Trinity Capital has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Site Centers has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Profitability

This table compares Trinity Capital and Site Centers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trinity Capital	43.45%	14.94%	6.69%
Site Centers	219.18%	40.56%	27.81%

Summary

Site Centers beats Trinity Capital on 10 of the 18 factors compared between the two stocks.

About Trinity Capital

Trinity Capital Inc. is a business development company. It is a venture capital firm specializing in venture debt to growth stage companies looking for loans and/or equipment financing. Trinity Capital Inc. was founded in 2019 is based in Phoenix, Arizona with additional offices in the United States.

About Site Centers

SITE Centers is an owner and manager of open-air shopping centers located in suburban, high household income communities. The Company is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol SITC.