Head to Head Analysis: Blackrock Tcp Capital (NASDAQ:TCPC) and Crescent Capital BDC (NASDAQ:CCAP)

Blackrock Tcp Capital (NASDAQ:TCPC) and Crescent Capital BDC (NASDAQ:CCAP) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Valuation & Earnings

This table compares Blackrock Tcp Capital and Crescent Capital BDC”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blackrock Tcp Capital	$4.10 million	114.39	-$63.14 million	($0.17)	-32.47
Crescent Capital BDC	$197.36 million	N/A	$73.65 million	$1.20	11.79

Crescent Capital BDC has higher revenue and earnings than Blackrock Tcp Capital. Blackrock Tcp Capital is trading at a lower price-to-earnings ratio than Crescent Capital BDC, indicating that it is currently the more affordable of the two stocks.

Dividends

Blackrock Tcp Capital pays an annual dividend of $1.00 per share and has a dividend yield of 18.1%. Crescent Capital BDC pays an annual dividend of $1.68 per share and has a dividend yield of 11.9%. Blackrock Tcp Capital pays out -588.2% of its earnings in the form of a dividend. Crescent Capital BDC pays out 140.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Crescent Capital BDC has raised its dividend for 1 consecutive years. Blackrock Tcp Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

49.5% of Crescent Capital BDC shares are owned by institutional investors. 0.2% of Blackrock Tcp Capital shares are owned by company insiders. Comparatively, 1.1% of Crescent Capital BDC shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Blackrock Tcp Capital and Crescent Capital BDC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blackrock Tcp Capital	-4.98%	15.12%	6.14%
Crescent Capital BDC	24.12%	10.55%	4.68%

Analyst Ratings

This is a breakdown of current ratings and price targets for Blackrock Tcp Capital and Crescent Capital BDC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blackrock Tcp Capital	2	1	0	0	1.33
Crescent Capital BDC	1	1	1	1	2.50

Blackrock Tcp Capital currently has a consensus target price of $6.75, indicating a potential upside of 22.28%. Crescent Capital BDC has a consensus target price of $16.33, indicating a potential upside of 15.43%. Given Blackrock Tcp Capital’s higher possible upside, research analysts plainly believe Blackrock Tcp Capital is more favorable than Crescent Capital BDC.

Volatility & Risk

Blackrock Tcp Capital has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Crescent Capital BDC has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.

Summary

Crescent Capital BDC beats Blackrock Tcp Capital on 11 of the 17 factors compared between the two stocks.

About Blackrock Tcp Capital

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.

About Crescent Capital BDC

Crescent Capital BDC, Inc. is as a business development company private equity / buyouts and loan fund. It specializes in directly investing. It specializes in middle market. The fund seeks to invest in United States.