Critical Review: Triplepoint Venture Growth BDC (TPVG) versus Stans Energy (HREEF)

Triplepoint Venture Growth BDC (NYSE:TPVG) and Stans Energy (OTCMKTS:HREEF) 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, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Triplepoint Venture Growth BDC and Stans Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Triplepoint Venture Growth BDC 0 2 2 0 2.50
Stans Energy 0 0 0 0 N/A

Triplepoint Venture Growth BDC presently has a consensus price target of $14.08, suggesting a potential upside of 16.30%. Given Triplepoint Venture Growth BDC’s higher possible upside, equities research analysts plainly believe Triplepoint Venture Growth BDC is more favorable than Stans Energy.

Volatility and Risk

Triplepoint Venture Growth BDC has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Stans Energy has a beta of 3.05, indicating that its share price is 205% more volatile than the S&P 500.

Profitability

This table compares Triplepoint Venture Growth BDC and Stans Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Triplepoint Venture Growth BDC 53.66% 11.43% 5.98%
Stans Energy N/A N/A N/A

Dividends

Triplepoint Venture Growth BDC pays an annual dividend of $1.44 per share and has a dividend yield of 11.9%. Stans Energy does not pay a dividend. Triplepoint Venture Growth BDC pays out 89.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Triplepoint Venture Growth BDC and Stans Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Triplepoint Venture Growth BDC $51.51 million 5.81 $19.22 million $1.61 7.52
Stans Energy N/A N/A N/A N/A N/A

Triplepoint Venture Growth BDC has higher revenue and earnings than Stans Energy.

Insider and Institutional Ownership

32.8% of Triplepoint Venture Growth BDC shares are held by institutional investors. Comparatively, 0.0% of Stans Energy shares are held by institutional investors. 1.8% of Triplepoint Venture Growth BDC shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Triplepoint Venture Growth BDC beats Stans Energy on 9 of the 11 factors compared between the two stocks.

About Triplepoint Venture Growth BDC

TriplePoint Venture Growth BDC Corp is a business development company specializing investments in growth stage. It also provides debt financing to venture growth space companies which includes growth capital loans, equipment financings, revolving loans, and direct equity investments. The fund seeks to invest in e-commerce, entertainment, technology and life sciences sector. Within technology the areas of focus include: Security, wireless communication equipments, network system and software, business applications software, conferencing equipments/services .big data, cloud computing, data storage, electronics, energy efficiency, hardware, information services, internet and media, networking, semiconductors, software, software as a service, and other technology related subsectors and within life sciences the areas of focus include: biotechnology, bio fuels/bio mass, diagnostic testing and bioinformatics, drug delivery, drug discovery, healthcare information systems, healthcare services, medical, surgical and therapeutic devices, pharmaceuticals and other life science related subsectors. Within growth capital loans it invests between $5 million and $50 million, for equipment financings it invests between $5 million and $25 million, for revolving loans it invests between $1 million and $25 million, and for direct equity investments it may invest between $0.1 million and $5 million (generally not exceeding 5% of the company's total equity). The debt financing products are typically structured as lines of credit and it invests through warrants and secured loans. It does not take board seat in the company.

About Stans Energy

Stans Energy Corp. operates as a resource development company with a focus on rare earth and specialty metal properties in Canada, the Kyrgyz Republic, and Russia. It primarily explores for uranium, rare earth elements, gold, and base metals. Stans Energy Corp. was incorporated in 2005 and is headquartered in Toronto, Canada.

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