TPG (NASDAQ:TPG) versus Sound Point Meridian Capital (NYSE:SPMC) Financial Review

TPG (NASDAQ:TPG) and Sound Point Meridian Capital (NYSE:SPMC) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Earnings & Valuation

This table compares TPG and Sound Point Meridian Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPG	$3.50 billion	7.05	$23.48 million	($0.19)	-343.64
Sound Point Meridian Capital	N/A	N/A	N/A	$1.42	12.22

TPG has higher revenue and earnings than Sound Point Meridian Capital. TPG is trading at a lower price-to-earnings ratio than Sound Point Meridian Capital, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TPG and Sound Point Meridian Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TPG	1.60%	25.79%	8.16%
Sound Point Meridian Capital	N/A	N/A	N/A

Insider & Institutional Ownership

94.0% of TPG shares are held by institutional investors. 76.5% of TPG shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

TPG pays an annual dividend of $2.36 per share and has a dividend yield of 3.6%. Sound Point Meridian Capital pays an annual dividend of $3.00 per share and has a dividend yield of 17.3%. TPG pays out -1,242.1% of its earnings in the form of a dividend. Sound Point Meridian Capital pays out 211.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

TPG has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500. Comparatively, Sound Point Meridian Capital has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for TPG and Sound Point Meridian Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPG	0	7	8	2	2.71
Sound Point Meridian Capital	0	1	1	1	3.00

TPG presently has a consensus target price of $62.57, indicating a potential downside of 4.17%. Sound Point Meridian Capital has a consensus target price of $21.25, indicating a potential upside of 22.48%. Given Sound Point Meridian Capital’s stronger consensus rating and higher possible upside, analysts clearly believe Sound Point Meridian Capital is more favorable than TPG.

Summary

TPG beats Sound Point Meridian Capital on 10 of the 15 factors compared between the two stocks.

About TPG

TPG Inc. operates as an alternative asset manager in the United States and internationally. The company offers investment management services to TPG Funds, limited partners, and other vehicles. It also offers monitoring services to portfolio companies; advisory, debt and equity arrangement, and underwriting and placement services; and capital structuring and other advisory services to portfolio companies. In addition, the company invests in private equity funds, real estate funds, hedge funds, and credit funds. TPG Inc. was founded in 1992 and is based in Fort Worth, Texas. The company operates as a subsidiary of TPG GP A, LLC.

About Sound Point Meridian Capital

Sound Point Meridian Capital Inc. is an externally managed, non-diversified closed-end management investment company. Its investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in third-party collateralized loan obligation equity and mezzanine tranches. Sound Point Meridian Capital Inc. is based in NEW YORK.