BlackRock TCP Capital (NASDAQ:TCPC) and Greenlight Capital Re (NASDAQ:GLRE) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.
Institutional & Insider Ownership
29.0% of BlackRock TCP Capital shares are held by institutional investors. Comparatively, 39.5% of Greenlight Capital Re shares are held by institutional investors. 0.7% of BlackRock TCP Capital shares are held by company insiders. Comparatively, 23.8% of Greenlight Capital Re shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares BlackRock TCP Capital and Greenlight Capital Re's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
BlackRock TCP Capital | $195.17 million | 4.32 | $30.58 million | $1.61 | 9.07 |
Greenlight Capital Re | $538.15 million | 0.59 | $-3,990,000.00 | N/A | N/A |
BlackRock TCP Capital has higher earnings, but lower revenue than Greenlight Capital Re.
Profitability
This table compares BlackRock TCP Capital and Greenlight Capital Re's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
BlackRock TCP Capital | 12.56% | 11.83% | 5.09% |
Greenlight Capital Re | -16.48% | -15.47% | -5.25% |
Analyst Recommendations
This is a summary of current ratings for BlackRock TCP Capital and Greenlight Capital Re, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
BlackRock TCP Capital | 0 | 1 | 3 | 0 | 2.75 |
Greenlight Capital Re | 0 | 0 | 0 | 0 | N/A |
BlackRock TCP Capital presently has a consensus target price of $13.00, suggesting a potential downside of 10.96%. Given BlackRock TCP Capital's higher possible upside, research analysts plainly believe BlackRock TCP Capital is more favorable than Greenlight Capital Re.
Volatility & Risk
BlackRock TCP Capital has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500. Comparatively, Greenlight Capital Re has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.
Summary
BlackRock TCP Capital beats Greenlight Capital Re on 9 of the 12 factors compared between the two stocks.