Triangle Capital Corporation (TCAP) versus Invesco California Value Municipal Income Trust (VCV) Financial Comparison

Triangle Capital Corporation (NYSE: TCAP) and Invesco California Value Municipal Income Trust (NYSE:VCV) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Dividends

Triangle Capital Corporation pays an annual dividend of $1.80 per share and has a dividend yield of 18.6%. Invesco California Value Municipal Income Trust pays an annual dividend of $0.64 per share and has a dividend yield of 5.0%. Triangle Capital Corporation pays out -202.2% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Triangle Capital Corporation and Invesco California Value Municipal Income Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Triangle Capital Corporation $113.68 4.07 $34.25 ($0.89) -10.88
Invesco California Value Municipal Income Trust N/A N/A N/A N/A N/A

Triangle Capital Corporation has higher revenue and earnings than Invesco California Value Municipal Income Trust.

Volatility & Risk

Triangle Capital Corporation has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Invesco California Value Municipal Income Trust has a beta of -0.12, indicating that its stock price is 112% less volatile than the S&P 500.

Profitability

This table compares Triangle Capital Corporation and Invesco California Value Municipal Income Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Triangle Capital Corporation -36.80% 10.46% 5.88%
Invesco California Value Municipal Income Trust N/A N/A N/A

Analyst Recommendations

This is a summary of recent ratings for Triangle Capital Corporation and Invesco California Value Municipal Income Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Triangle Capital Corporation 2 3 5 0 2.30
Invesco California Value Municipal Income Trust 0 0 0 0 N/A

Triangle Capital Corporation presently has a consensus target price of $17.86, suggesting a potential upside of 84.47%. Given Triangle Capital Corporation’s higher possible upside, analysts clearly believe Triangle Capital Corporation is more favorable than Invesco California Value Municipal Income Trust.

Institutional & Insider Ownership

31.4% of Triangle Capital Corporation shares are held by institutional investors. Comparatively, 8.4% of Invesco California Value Municipal Income Trust shares are held by institutional investors. 4.1% of Triangle Capital Corporation shares are held by insiders. Comparatively, 1.0% of Invesco California Value Municipal Income Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Triangle Capital Corporation beats Invesco California Value Municipal Income Trust on 10 of the 11 factors compared between the two stocks.

Triangle Capital Corporation Company Profile

Triangle Capital Corporation is an internally managed, non-diversified closed-end management investment company. The Company is a specialty finance company that provides customized financing to lower middle market companies located primarily in the United States. The Company’s investment objective is to seek attractive returns by generating current income from its debt investments and capital appreciation from its equity-related investments. The Company invests primarily in subordinated debt securities secured by second lien security interests in portfolio company assets, coupled with equity interests. The Company also invests in senior debt securities secured by first lien security interests in portfolio company assets. The Company’s portfolio includes its investments in various industry sectors, such as baby products; manufacturer and distributor for independent artists and authors; loan origination software solutions provider, and restaurant.

Invesco California Value Municipal Income Trust Company Profile

Invesco Van Kampen California Value Municipal Income Trust (the Trust), formerly Invesco California Value Municipal Income Trust, is a diversified, closed-end management investment trust. The Trust’s investment objective is to seek to provide common shareholders with a high level of current income exempt from federal and California income taxes, consistent with preservation of capital. The Trust will invest substantially all of its assets in California municipal securities rated investment grade at the time of investment. The Trust seeks to achieve its investment objective by investing primarily in California municipal securities that are rated investment grade at the time of investment. Municipal securities include municipal bonds, municipal notes, municipal commercial paper and lease obligations. Invesco Advisers, Inc. serves as its investment advisor.

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