TICC Capital (NASDAQ: TICC) and Fidus Investment (NASDAQ:FDUS) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
Institutional & Insider Ownership
16.7% of TICC Capital shares are owned by institutional investors. Comparatively, 31.4% of Fidus Investment shares are owned by institutional investors. 5.9% of TICC Capital shares are owned by insiders. Comparatively, 1.3% of Fidus Investment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
TICC Capital has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500. Comparatively, Fidus Investment has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for TICC Capital and Fidus Investment, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TICC Capital currently has a consensus price target of $5.50, suggesting a potential downside of 12.70%. Fidus Investment has a consensus price target of $18.00, suggesting a potential upside of 39.10%. Given Fidus Investment’s stronger consensus rating and higher probable upside, analysts clearly believe Fidus Investment is more favorable than TICC Capital.
This table compares TICC Capital and Fidus Investment’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares TICC Capital and Fidus Investment’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TICC Capital||$61.42 million||5.25||$43.60 million||$0.85||7.41|
|Fidus Investment||$68.61 million||4.62||$43.95 million||$1.86||6.96|
Fidus Investment has higher revenue and earnings than TICC Capital. Fidus Investment is trading at a lower price-to-earnings ratio than TICC Capital, indicating that it is currently the more affordable of the two stocks.
TICC Capital pays an annual dividend of $0.80 per share and has a dividend yield of 12.7%. Fidus Investment pays an annual dividend of $1.56 per share and has a dividend yield of 12.1%. TICC Capital pays out 94.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Fidus Investment pays out 83.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Fidus Investment beats TICC Capital on 10 of the 15 factors compared between the two stocks.
About TICC Capital
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.
About Fidus Investment
Fidus Investment Corporation is a closed-end, non-diversified investment company. The Company provides customized debt and equity financing solutions to lower middle-market companies. The Company’s investment objective is to provide attractive risk-adjusted returns by generating both current income from its debt investments and capital appreciation from its equity-related investments. The Company typically invests in mezzanine debt, which includes senior subordinated notes and junior secured loans. The Company structures some of its debt investments as senior secured or unitranche loans. The Company’s equity securities typically consist of either a direct minority equity investment in common or preferred stock or membership/partnership interests of a portfolio company, or it may receive warrants to buy a minority equity interest in a portfolio company in connection with a debt investment. Its investment activities are managed by Fidus Investment Advisors, LLC, its investment advisor.
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