INTL Fcstone (NASDAQ: INTL) and TCG BDC (NASDAQ:CGBD) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares INTL Fcstone and TCG BDC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
INTL Fcstone 0.02% 1.41% 0.10%
TCG BDC 50.18% 8.82% 4.94%

Earnings and Valuation

This table compares INTL Fcstone and TCG BDC’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
INTL Fcstone $29.42 billion 0.03 $6.40 million $0.31 139.84
TCG BDC $110.97 million 10.35 $69.80 million N/A N/A

TCG BDC has lower revenue, but higher earnings than INTL Fcstone.

Dividends

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.

Institutional & Insider Ownership

65.0% of INTL Fcstone shares are held by institutional investors. Comparatively, 9.1% of TCG BDC shares are held by institutional investors. 20.5% of INTL Fcstone shares are held by insiders. Comparatively, 0.1% of TCG BDC shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for INTL Fcstone and TCG BDC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
INTL Fcstone 0 0 0 0 N/A
TCG BDC 0 0 4 0 3.00

TCG BDC has a consensus price target of $19.13, indicating a potential upside of 3.55%. Given TCG BDC’s higher possible upside, analysts clearly believe TCG BDC is more favorable than INTL Fcstone.

Summary

TCG BDC beats INTL Fcstone on 8 of the 11 factors compared between the two stocks.

About INTL Fcstone

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.

About TCG BDC

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.

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