Protective Insurance (NASDAQ:PTVCA) and BlackRock TCP Capital (NASDAQ:TCPC) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.
Volatility & Risk
Protective Insurance has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, BlackRock TCP Capital has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500.
Insider and Institutional Ownership
2.6% of Protective Insurance shares are held by institutional investors. Comparatively, 29.0% of BlackRock TCP Capital shares are held by institutional investors. 26.5% of Protective Insurance shares are held by company insiders. Comparatively, 0.7% of BlackRock TCP Capital 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.
Analyst Recommendations
This is a summary of current recommendations for Protective Insurance and BlackRock TCP Capital, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Protective Insurance | 0 | 0 | 0 | 0 | N/A |
BlackRock TCP Capital | 0 | 1 | 3 | 0 | 2.75 |
BlackRock TCP Capital has a consensus price target of $13.00, indicating a potential downside of 11.14%. Given BlackRock TCP Capital's higher possible upside, analysts clearly believe BlackRock TCP Capital is more favorable than Protective Insurance.
Dividends
Protective Insurance pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. BlackRock TCP Capital pays an annual dividend of $1.20 per share and has a dividend yield of 8.2%. BlackRock TCP Capital pays out 74.5% of its earnings in the form of a dividend. Protective Insurance has raised its dividend for 1 consecutive years.
Earnings and Valuation
This table compares Protective Insurance and BlackRock TCP Capital's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Protective Insurance | $495.60 million | 0.65 | $7.35 million | N/A | N/A |
BlackRock TCP Capital | $195.17 million | 4.33 | $30.58 million | $1.61 | 9.09 |
BlackRock TCP Capital has lower revenue, but higher earnings than Protective Insurance.
Profitability
This table compares Protective Insurance and BlackRock TCP Capital's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Protective Insurance | -0.82% | -0.47% | -0.10% |
BlackRock TCP Capital | 12.56% | 11.83% | 5.09% |
Summary
BlackRock TCP Capital beats Protective Insurance on 11 of the 15 factors compared between the two stocks.