Altaba (NASDAQ: AABA) and TriplePoint Venture Growth BDC (NYSE:TPVG) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.
This table compares Altaba and TriplePoint Venture Growth BDC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TriplePoint Venture Growth BDC||43.72%||12.05%||5.99%|
Altaba has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500. Comparatively, TriplePoint Venture Growth BDC has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.
Institutional and Insider Ownership
79.7% of Altaba shares are owned by institutional investors. Comparatively, 33.8% of TriplePoint Venture Growth BDC shares are owned by institutional investors. 24.0% of Altaba shares are owned by company insiders. Comparatively, 1.3% of TriplePoint Venture Growth 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.
Earnings & Valuation
This table compares Altaba and TriplePoint Venture Growth BDC’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Altaba||$5.17 billion||11.80||-$214.32 million||($0.02)||-3,489.26|
|TriplePoint Venture Growth BDC||$43.63 million||5.22||$11.12 million||$1.41||9.12|
TriplePoint Venture Growth BDC has lower revenue, but higher earnings than Altaba. Altaba is trading at a lower price-to-earnings ratio than TriplePoint Venture Growth BDC, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for Altaba and TriplePoint Venture Growth BDC, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TriplePoint Venture Growth BDC||0||1||1||0||2.50|
Altaba presently has a consensus target price of $52.53, suggesting a potential downside of 24.76%. TriplePoint Venture Growth BDC has a consensus target price of $14.00, suggesting a potential upside of 8.86%. Given TriplePoint Venture Growth BDC’s stronger consensus rating and higher probable upside, analysts clearly believe TriplePoint Venture Growth BDC is more favorable than Altaba.
TriplePoint Venture Growth BDC pays an annual dividend of $1.44 per share and has a dividend yield of 11.2%. Altaba does not pay a dividend. TriplePoint Venture Growth BDC pays out 102.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
TriplePoint Venture Growth BDC beats Altaba on 9 of the 16 factors compared between the two stocks.
Altaba Company Profile
Altaba Inc. (the Fund), formerly Yahoo! Inc., is a non-diversified, closed-end management investment company. The Fund seeks to track the combined investment return of the Alibaba Shares and the Yahoo Japan Shares it owns. Alibaba Shares represent an approximate 15% equity interest in Alibaba Group Holding Limited (Alibaba), and its Yahoo Japan Corporation ((Yahoo Japa) Shares represent an approximate 36% equity interest in Yahoo Japan. In addition to the Alibaba Shares and the Yahoo Japan Shares, the Fund also owns the minority investments, all of the equity interests in Excalibur IP, LLC (which owns the Excalibur IP Assets) and the marketable debt securities portfolio. The Fund’s external investment advisors are BlackRock Advisors, LLC and Morgan Stanley Smith Barney LLC.
TriplePoint Venture Growth BDC Company Profile
TriplePoint Venture Growth BDC Corp. is a closed-end, non-diversified management investment company. The Company’s investment objective is to maximize its total return to stockholders primarily in the form of current income and, to a lesser extent, capital appreciation by primarily lending with warrants to venture growth stage companies focused in technology, life sciences and other high growth industries, which are backed by TriplePoint Capital LLC’s (TPC) select group of venture capital investors. The Company targets investment opportunities in venture growth stage companies backed by venture capital investors. The Company originates and invests primarily in loans that have a secured collateral position and are used by venture growth stage companies to finance their continued expansion and growth, equipment financings and, on a select basis, revolving loans. The Company is managed by TPVG Advisers LLC.
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