Medley Capital (NYSE: MCC) and TICC Capital (NASDAQ:TICC) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.
Institutional & Insider Ownership
29.2% of Medley Capital shares are owned by institutional investors. Comparatively, 15.9% of TICC Capital shares are owned by institutional investors. 8.7% of Medley Capital shares are owned by company insiders. Comparatively, 5.9% of TICC Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a summary of current ratings for Medley Capital and TICC Capital, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Medley Capital currently has a consensus target price of $6.17, indicating a potential upside of 17.01%. TICC Capital has a consensus target price of $5.50, indicating a potential downside of 2.83%. Given Medley Capital’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Medley Capital is more favorable than TICC Capital.
Risk & Volatility
Medley Capital has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, TICC Capital has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.
This table compares Medley Capital and TICC Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Medley Capital and TICC Capital’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Medley Capital||$96.26 million||2.98||-$15.07 million||($0.26)||-20.27|
|TICC Capital||$69.28 million||4.21||$110.36 million||$1.05||5.39|
TICC Capital has lower revenue, but higher earnings than Medley Capital. Medley Capital is trading at a lower price-to-earnings ratio than TICC Capital, indicating that it is currently the more affordable of the two stocks.
Medley Capital pays an annual dividend of $0.64 per share and has a dividend yield of 12.1%. TICC Capital pays an annual dividend of $0.80 per share and has a dividend yield of 14.1%. Medley Capital pays out -246.2% of its earnings in the form of a dividend. TICC Capital pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
TICC Capital beats Medley Capital on 9 of the 16 factors compared between the two stocks.
Medley Capital Company Profile
Medley Capital Corporation is a non-diversified closed-end management investment company. The Company’s investment objective is to generate current income and capital appreciation by lending directly to privately-held middle market companies, primarily through directly originated transactions to help these companies expand their business, refinance and make acquisitions. Its investment portfolio includes senior secured first lien term loans, senior secured second lien term loans, unitranche, senior secured first lien notes, subordinated notes and warrants and minority equity securities. It may invest up to 100% of its assets in securities acquired directly from issuers in privately negotiated transactions. Its portfolio of investments includes industries, including banking, finance, insurance and real estate; construction and building; healthcare and pharmaceuticals; beverage and food, and telecommunications. MCC Advisors LLC is the Company’s investment advisor.
TICC Capital Company Profile
TICC Capital Corp. is a closed-end, non-diversified management investment company. The Company’s investment objective is to maximize its portfolio’s total return. The Company primarily focuses on seeking current income by investing primarily in corporate debt securities. The Company’s debt investments may include syndicated loans and bilateral loans. The Company holds interests in structured finance investments, including collateralized loan obligation (CLO) investment vehicles that own debt securities. CLO investments may also include warehouse facilities, which are financing structures intended to aggregate loans that may be used to form the basis of a CLO vehicle. The Company may also invest in publicly traded debt and/or equity securities. Its portfolio includes its investments in various industries, such as structured finance, telecommunication services, business services, printing and publishing, and financial intermediaries. TICC Management, LLC is its investment advisor.
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