Wright Investors Service (OTCMKTS:WISH) and Triangle Capital (NYSE:TCAP) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Profitability

This table compares Wright Investors Service and Triangle Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wright Investors Service -23.91% -17.81% -16.20%
Triangle Capital N/A N/A N/A

Institutional and Insider Ownership

4.2% of Wright Investors Service shares are owned by institutional investors. Comparatively, 50.1% of Triangle Capital shares are owned by institutional investors. 30.5% of Wright Investors Service shares are owned by insiders. Comparatively, 3.5% of Triangle Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Wright Investors Service and Triangle Capital’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wright Investors Service $5.41 million 1.53 -$1.29 million N/A N/A
Triangle Capital N/A N/A N/A N/A N/A

Triangle Capital has lower revenue, but higher earnings than Wright Investors Service.

Dividends

Triangle Capital pays an annual dividend of $1.20 per share and has a dividend yield of 10.2%. Wright Investors Service does not pay a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for Wright Investors Service and Triangle Capital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wright Investors Service 0 0 0 0 N/A
Triangle Capital 2 3 0 0 1.60

Triangle Capital has a consensus price target of $12.75, indicating a potential upside of 8.05%. Given Triangle Capital’s higher possible upside, analysts plainly believe Triangle Capital is more favorable than Wright Investors Service.

Summary

Triangle Capital beats Wright Investors Service on 6 of the 8 factors compared between the two stocks.

Wright Investors Service Company Profile

Wright Investors’ Service Holdings, Inc. engages in the provision of investment management and financial advisory services. It deals with equities, fixed income, and asset allocation products. The company was founded on March 10, 1998 and is headquartered in Greenwich, CT.

Triangle Capital Company Profile

Triangle Capital Corporation is a business development company specializing in private equity and mezzanine investments. It focuses on leveraged buyouts, management buyouts, ESOPs, change of control transactions, acquisition financings, growth financing, and recapitalizations in lower middle market, mature, and later stage companies. The firm prefers to make investments in many business sectors including manufacturing, distribution, transportation, energy, communications, health services, restaurants, media, and others. It primarily invests in companies located throughout the United States, with an emphasis on the Southeast and Midatlantic. The firm makes equity investments between $1 million and $25 million and debt investments between $5 million and $30 million per transaction, in companies having annual revenues between $20 million and $200 million and EBITDA between $3 million and $35 million and can also co-invest. It typically makes investments between $5 million and $35 million. It primarily invests in senior subordinated debt securities secured by second lien security interests in portfolio company assets, coupled with equity interests. The firm also invests in senior debt securities secured by first lien security interests in portfolio companies. Triangle Capital Corporation was incorporated on October 10, 2006 and is based in Raleigh, North Carolina.

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