Critical Contrast: Blackrock Tcp Capital (TCPC) vs. Its Competitors

Blackrock Tcp Capital (NASDAQ:TCPC) is one of 1,743 publicly-traded companies in the “Capital Markets” industry, but how does it contrast to its rivals? We will compare Blackrock Tcp Capital to similar companies based on the strength of its profitability, risk, earnings, valuation, dividends, analyst recommendations and institutional ownership.

Volatility and Risk

Blackrock Tcp Capital has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Blackrock Tcp Capital’s rivals have a beta of 0.79, meaning that their average share price is 21% less volatile than the S&P 500.

Dividends

Blackrock Tcp Capital pays an annual dividend of $0.68 per share and has a dividend yield of 15.8%. Blackrock Tcp Capital pays out -53.1% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 29.1% of their earnings in the form of a dividend. Blackrock Tcp Capital is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Blackrock Tcp Capital and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Blackrock Tcp Capital	$201.79 million	-$88.93 million	-3.36
Blackrock Tcp Capital Competitors	$2.32 billion	$399.91 million	17.41

Blackrock Tcp Capital’s rivals have higher revenue and earnings than Blackrock Tcp Capital. Blackrock Tcp Capital is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Blackrock Tcp Capital and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blackrock Tcp Capital	-128.77%	12.86%	5.16%
Blackrock Tcp Capital Competitors	318.28%	11.55%	3.69%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Blackrock Tcp Capital and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blackrock Tcp Capital	1	3	0	0	1.75
Blackrock Tcp Capital Competitors	5561	20139	22479	642	2.37

Blackrock Tcp Capital currently has a consensus target price of $4.00, suggesting a potential downside of 6.98%. As a group, “Capital Markets” companies have a potential upside of 26.43%. Given Blackrock Tcp Capital’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Blackrock Tcp Capital has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

30.6% of shares of all “Capital Markets” companies are held by institutional investors. 0.4% of Blackrock Tcp Capital shares are held by company insiders. Comparatively, 13.0% of shares of all “Capital Markets” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Blackrock Tcp Capital rivals beat Blackrock Tcp Capital on 10 of the 15 factors compared.

Blackrock Tcp Capital Company Profile

BlackRock TCP Capital Corp. is a business development company specializing in direct equity and debt investments in middle-market, small businesses, debt securities, senior secured loans, junior loans, originated loans, mezzanine, senior debt instruments, bonds, and secondary-market investments. It typically invests in communication services, public relations services, television, wireless telecommunication services, apparel, textile mills, restaurants, retailing, energy, oil and gas extraction, Patent owners and Lessors, Federal and Federally- Sponsored Credit agencies, insurance, hospital and healthcare centers, Biotechnology, engineering services, heavy electrical equipment, tax accounting, scientific and related consulting services, charter freight air transportation, Information technology consulting, application hosting services, software diagram and design, computer aided design, communication equipment, electronics manufacturing equipment, computer components, chemicals. It seeks to invest in the United States. The fund typically invests between $10 million and $35 million in companies with enterprise values between $100 million and $1500 million including complex situations. It prefers to make equity investments in companies for an ownership stake.