Financial Contrast: Orchid Island Capital (NYSE:ORC) vs. Vinci Compass Investments (NASDAQ:VINP)

Vinci Compass Investments (NASDAQ:VINP) and Orchid Island Capital (NYSE:ORC) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Valuation and Earnings

This table compares Vinci Compass Investments and Orchid Island Capital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vinci Compass Investments	$1.06 billion	0.58	$38.97 million	$0.70	13.34
Orchid Island Capital	$414.00 million	3.02	$159.03 million	$1.48	4.23

Orchid Island Capital has lower revenue, but higher earnings than Vinci Compass Investments. Orchid Island Capital is trading at a lower price-to-earnings ratio than Vinci Compass Investments, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Vinci Compass Investments and Orchid Island Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vinci Compass Investments	1	1	2	0	2.25
Orchid Island Capital	1	2	0	0	1.67

Vinci Compass Investments presently has a consensus target price of $13.50, indicating a potential upside of 44.54%. Orchid Island Capital has a consensus target price of $7.50, indicating a potential upside of 19.90%. Given Vinci Compass Investments’ stronger consensus rating and higher possible upside, analysts plainly believe Vinci Compass Investments is more favorable than Orchid Island Capital.

Dividends

Vinci Compass Investments pays an annual dividend of $0.68 per share and has a dividend yield of 7.3%. Orchid Island Capital pays an annual dividend of $1.20 per share and has a dividend yield of 19.2%. Vinci Compass Investments pays out 97.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Orchid Island Capital pays out 81.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Orchid Island Capital has raised its dividend for 1 consecutive years. Orchid Island Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

34.1% of Vinci Compass Investments shares are owned by institutional investors. Comparatively, 32.7% of Orchid Island Capital shares are owned by institutional investors. 49.3% of Vinci Compass Investments shares are owned by insiders. Comparatively, 0.3% of Orchid Island Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Vinci Compass Investments has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500. Comparatively, Orchid Island Capital has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500.

Profitability

This table compares Vinci Compass Investments and Orchid Island Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vinci Compass Investments	23.77%	12.65%	6.67%
Orchid Island Capital	N/A	11.87%	1.35%

Summary

Vinci Compass Investments beats Orchid Island Capital on 10 of the 17 factors compared between the two stocks.

About Vinci Compass Investments

Vinci Partners Investments Ltd. operates as an asset management firm in Brazil. The company focuses on private markets, liquid strategies, investment products and solutions, and retirement services. It offers private equity, infrastructure, real estate, credit, special situations, equities, hedge funds, and investment products and solutions comprising portfolio and management services. In addition, the company financial and strategic advisory services, focusing on IPO advisory and mergers and acquisition transactions to entrepreneurs, corporate senior management teams, and boards of directors. Vinci Partners Investments Ltd. was founded in 2009 and is based in Rio de Janeiro, Brazil.

About Orchid Island Capital

Orchid Island Capital, Inc., a specialty finance company, invests in residential mortgage-backed securities (RMBS) in the United States. The company’s RMBS is backed by single-family residential mortgage loans, referred as Agency RMBS. Its portfolio includes traditional pass-through Agency RMBS, such as mortgage pass through certificates and collateralized mortgage obligations; and structured Agency RMBS comprising interest only securities, inverse interest only securities, and principal only securities. The company has elected to be taxed as a real estate investment trust (REIT) for the United States federal income tax purposes. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to stockholders, if it annually distributes dividends equal to at least 90% of its REIT taxable income to its stockholders. Orchid Island Capital, Inc. was incorporated in 2010 and is headquartered in Vero Beach, Florida.