Financial Engines (NASDAQ:FNGN) and Barings BDC (NYSE:BBDC) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.
Financial Engines pays an annual dividend of $0.32 per share and has a dividend yield of 0.7%. Barings BDC pays an annual dividend of $0.52 per share and has a dividend yield of 5.3%.
This table compares Financial Engines and Barings BDC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for Financial Engines and Barings BDC, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Barings BDC has a consensus target price of $11.20, indicating a potential upside of 13.51%. Given Barings BDC’s higher probable upside, analysts clearly believe Barings BDC is more favorable than Financial Engines.
Institutional and Insider Ownership
99.8% of Financial Engines shares are owned by institutional investors. Comparatively, 40.6% of Barings BDC shares are owned by institutional investors. 3.0% of Financial Engines shares are owned by company insiders. Comparatively, 0.3% of Barings BDC shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Financial Engines and Barings BDC’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Barings BDC||$80.22 million||6.30||-$114.28 million||N/A||N/A|
Financial Engines has higher earnings, but lower revenue than Barings BDC.
Financial Engines beats Barings BDC on 5 of the 9 factors compared between the two stocks.
Financial Engines Company Profile
Financial Engines, Inc. provides independent technology-enabled financial advisory, discretionary portfolio management, personalized investment advice, financial and retirement income planning, and financial education and guidance services in the United States. It assists individuals to develop a strategy to reach financial goals by offering a set of services, including personalized plans for saving and investing, assessments of retirement income, and the option to meet face-to-face with a financial advisor. The company's products and services include Professional Management that provides discretionary portfolio management service for individuals in the workplace who want affordable and personalized portfolio management for their retirement accounts; Personal Advisor, which offers discretionary portfolio management for 401(k), IRA, and taxable accounts for defined contribution (DC) plan participants and individual retail investors; and Online Advice, an Internet-based investment advisory service designed for individuals who wish to take an active role in personally managing their portfolios. Its products and services also comprise Financial Planning and Retirement Income Planning services, including social security guidance; and Financial Wellness, which offers a range of financial education and guidance through multiple channels, including in person, on-site events, online content, and phone-based advisors. The company delivers its services to plan sponsors and plan participants primarily through connections to nine DC plan providers. Financial Engines, Inc. was founded in 1996 and is headquartered in Sunnyvale, California.
Barings BDC Company Profile
Barings BDC, Inc. (NYSE:BBDC) 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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