Protective Insurance (NASDAQ:PTVCB) and BlackRock TCP Capital (NASDAQ:TCPC) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.
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 increased its dividend for 1 consecutive years.
Earnings and Valuation
This table compares Protective Insurance and BlackRock TCP Capital's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Protective Insurance | $495.60 million | 0.66 | $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.
Institutional and Insider Ownership
45.8% of Protective Insurance shares are held by institutional investors. Comparatively, 29.0% of BlackRock TCP Capital shares are held by institutional investors. 27.3% of Protective Insurance shares are held by insiders. Comparatively, 0.7% of BlackRock TCP Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
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% |
Risk & Volatility
Protective Insurance has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, BlackRock TCP Capital has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and price targets for Protective Insurance and BlackRock TCP Capital, as reported 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 target price of $13.00, indicating a potential downside of 11.14%. Given BlackRock TCP Capital's higher probable upside, analysts plainly believe BlackRock TCP Capital is more favorable than Protective Insurance.
Summary
BlackRock TCP Capital beats Protective Insurance on 10 of the 15 factors compared between the two stocks.