GSV Capital Corp (NASDAQ: GSVC) and TICC Capital Corp. (NASDAQ:TICC) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitabiliy and earnings.
GSV Capital Corp pays an annual dividend of $0.04 per share and has a dividend yield of 0.9%. TICC Capital Corp. pays an annual dividend of $0.80 per share and has a dividend yield of 12.1%. GSV Capital Corp pays out -3.7% of its earnings in the form of a dividend. TICC Capital Corp. pays out 45.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This is a breakdown of current recommendations and price targets for GSV Capital Corp and TICC Capital Corp., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|GSV Capital Corp||0||1||0||0||2.00|
|TICC Capital Corp.||3||0||0||0||1.00|
TICC Capital Corp. has a consensus price target of $6.00, suggesting a potential downside of 9.23%. Given TICC Capital Corp.’s higher probable upside, analysts clearly believe TICC Capital Corp. is more favorable than GSV Capital Corp.
Volatility & Risk
GSV Capital Corp has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, TICC Capital Corp. has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.
Earnings & Valuation
This table compares GSV Capital Corp and TICC Capital Corp.’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|GSV Capital Corp||N/A||N/A||N/A||($1.09)||-3.96|
|TICC Capital Corp.||$70.44 million||4.83||$91.12 million||$1.77||3.73|
TICC Capital Corp. has higher revenue and earnings than GSV Capital Corp. GSV Capital Corp is trading at a lower price-to-earnings ratio than TICC Capital Corp., indicating that it is currently the more affordable of the two stocks.
This table compares GSV Capital Corp and TICC Capital Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|GSV Capital Corp||-6.40%||-5.42%||-3.40%|
|TICC Capital Corp.||73.21%||12.50%||8.01%|
Insider and Institutional Ownership
29.6% of GSV Capital Corp shares are owned by institutional investors. Comparatively, 19.8% of TICC Capital Corp. shares are owned by institutional investors. 0.5% of GSV Capital Corp shares are owned by insiders. Comparatively, 5.9% of TICC Capital Corp. shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
TICC Capital Corp. beats GSV Capital Corp on 8 of the 12 factors compared between the two stocks.
About GSV Capital Corp
GSV Capital Corp. (GSV Capital) is an externally managed, non-diversified closed-end management investment company. The Company’s investment objective is to maximize its portfolio’s total return, principally by seeking capital gains on its equity and equity-related investments. The Company invests principally in the equity securities, which are venture-capital-backed emerging companies. The Company acquires its investments through direct investments with portfolio companies, secondary marketplaces for private companies and negotiations with selling stockholders. The Company may also invest in select publicly traded equity securities or certain non-United States companies that otherwise meet its investment criteria. It seeks to invest approximately 90% of its portfolio in late-stage companies and the remaining approximately 10% in emerging companies that fit within its targeted areas. Its investment activities are managed by its investment advisor, GSV Asset Management, LLC.
About TICC Capital Corp.
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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