Reviewing Blackrock Tcp Capital (NASDAQ:TCPC) & Brookfield (NYSE:BN)

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

Insider & Institutional Ownership

61.6% of Brookfield shares are owned by institutional investors. 0.4% of Blackrock Tcp Capital shares are owned by company insiders. Comparatively, 11.0% of Brookfield shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Blackrock Tcp Capital pays an annual dividend of $0.68 per share and has a dividend yield of 17.0%. Brookfield pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. Blackrock Tcp Capital pays out -53.1% of its earnings in the form of a dividend. Brookfield pays out 50.9% 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. Brookfield has raised its dividend for 2 consecutive years. Blackrock Tcp Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Blackrock Tcp Capital and Brookfield”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blackrock Tcp Capital	$201.79 million	1.67	-$88.93 million	($1.28)	-3.13
Brookfield	$75.10 billion	1.20	$1.31 billion	$0.55	67.05

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

Risk & Volatility

Blackrock Tcp Capital has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Brookfield has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Blackrock Tcp Capital and Brookfield, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blackrock Tcp Capital	2	2	0	0	1.50
Brookfield	0	2	10	1	2.92

Blackrock Tcp Capital currently has a consensus price target of $3.75, indicating a potential downside of 6.48%. Brookfield has a consensus price target of $57.40, indicating a potential upside of 55.66%. Given Brookfield’s stronger consensus rating and higher probable upside, analysts clearly believe Brookfield is more favorable than Blackrock Tcp Capital.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Blackrock Tcp Capital	-61.27%	13.85%	5.28%
Brookfield	1.85%	3.93%	1.22%

Summary

Brookfield beats Blackrock Tcp Capital on 13 of the 18 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 Brookfield

Brookfield Corporation is an alternative asset manager and REIT/Real Estate Investment Manager firm focuses on real estate, renewable power, infrastructure and venture capital and private equity assets. It manages a range of public and private investment products and services for institutional and retail clients. It typically makes investments in sizeable, premier assets across geographies and asset classes. It invests both its own capital as well as capital from other investors. Within private equity and venture capital, it focuses on acquisition, early ventures, control buyouts and financially distressed, buyouts and corporate carve-outs, recapitalizations, convertible, senior and mezzanine financings, operational and capital structure restructuring, strategic re-direction, turnaround, and under-performing midmarket companies. It invests in both public debt and equity markets. It invests in private equity sectors with focus on Business Services include infrastructure, healthcare, road fuel distribution and marketing, construction and real estate; Industrials include manufacturers of automotive batteries, graphite electrodes, returnable plastic packaging, and sanitation management and development; and Residential/ infrastructure services. It targets companies which likely possess underlying real assets, primarily in sectors such as industrial products, building materials, metals, mining, homebuilding, oil and gas, paper and packaging, manufacturing and forest product sectors. It invests globally with focus on North America including Brazil, the United States, Canada; Europe; and Australia; and Asia-Pacific. The firm considers equity investments in the range of $2 million to $500 million. It has a four-year investment period and a 10-year term with two one-year extensions. The firm prefers to take minority stake and majority stake. Brookfield Corporation was founded in 1997 and based in Toronto, Canada with additional offices across Northern America; South America; Europe; Middle East and Asia.