BlackRock TCP Capital (NASDAQ:TCPC) and National General (NASDAQ:NGHC) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.
Institutional & Insider Ownership
38.9% of BlackRock TCP Capital shares are owned by institutional investors. Comparatively, 52.1% of National General shares are owned by institutional investors. 0.6% of BlackRock TCP Capital shares are owned by company insiders. Comparatively, 3.4% of National General shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
BlackRock TCP Capital has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, National General has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.
Earnings & Valuation
This table compares BlackRock TCP Capital and National General’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BlackRock TCP Capital||$190.50 million||4.17||$45.48 million||$1.59||8.51|
|National General||$4.61 billion||0.60||$207.35 million||$2.09||11.67|
National General has higher revenue and earnings than BlackRock TCP Capital. BlackRock TCP Capital is trading at a lower price-to-earnings ratio than National General, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for BlackRock TCP Capital and National General, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BlackRock TCP Capital||0||0||3||0||3.00|
BlackRock TCP Capital presently has a consensus target price of $16.67, suggesting a potential upside of 23.18%. National General has a consensus target price of $32.40, suggesting a potential upside of 32.84%. Given National General’s higher possible upside, analysts plainly believe National General is more favorable than BlackRock TCP Capital.
BlackRock TCP Capital pays an annual dividend of $1.44 per share and has a dividend yield of 10.6%. National General pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. BlackRock TCP Capital pays out 90.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National General pays out 7.7% of its earnings in the form of a dividend.
This table compares BlackRock TCP Capital and National General’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|BlackRock TCP Capital||14.19%||11.45%||5.63%|
National General beats BlackRock TCP Capital on 9 of the 16 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, senior secured loans, junior loans, originated loans, mezzanine, senior debt instruments, bonds, and secondary-market investments. 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. It prefers to make equity investments in companies for an ownership stake.
About National General
National General Holdings Corp., a specialty personal lines insurance holding company, provides various insurance products and services in the United States, Bermuda, Luxembourg, and Sweden. The company's Property and Casualty segment offers standard, preferred, and nonstandard automobile insurance products; and recreational vehicle (RV) insurance products that carry RV-specific endorsements comprising automatic personal effects coverage, optional replacement cost coverage, RV storage coverage, and full-time liability coverage. It also provides homeowners policies consisting of property and liability coverages for one-and two-family, and owner-occupied residences; and additional personal umbrella coverage to the homeowners. In addition, this segment offers small business automobile insurance products, which covers liability and physical damage caused by light-to-medium duty commercial vehicles; motorcycle insurance products for various types of motorcycles, golf carts, and all-terrain vehicles; and lender-placed insurance products, including fire, home, and flood products, as well as collateral protection insurance and guaranteed asset protection products for automobiles. It sells its products through retail store fronts, Web/mobile, phone contact centers, and kiosks; and agents and affinity partners. The company's Accident and Health segment provides accident and non-major medical health insurance products, such as accident/AD&D coverage in the event of bodily injury or death due to accidental means; hospital indemnity; short-term medical plans; cancer/critical illness policies; basic dental coverage; and life insurance products for individuals, as well as stop loss programs for employers. It sells its products through agents, managing general underwriters, employers, Internet; and directly. The company was formerly known as American Capital Acquisition Corporation. National General Holdings Corp. was founded in 1939 and is headquartered in New York, New York.
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