TICC Capital (NASDAQ: TICC) and Tortoise Energy Infrastructure (NYSE:TYG) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.
This table compares TICC Capital and Tortoise Energy Infrastructure’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tortoise Energy Infrastructure||N/A||N/A||N/A|
TICC Capital pays an annual dividend of $0.80 per share and has a dividend yield of 13.0%. Tortoise Energy Infrastructure pays an annual dividend of $2.62 per share and has a dividend yield of 10.6%. 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.
This is a breakdown of recent ratings for TICC Capital and Tortoise Energy Infrastructure, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tortoise Energy Infrastructure||0||0||1||0||3.00|
TICC Capital presently has a consensus price target of $5.50, suggesting a potential downside of 10.71%. Tortoise Energy Infrastructure has a consensus price target of $34.00, suggesting a potential upside of 37.10%. Given Tortoise Energy Infrastructure’s stronger consensus rating and higher probable upside, analysts clearly believe Tortoise Energy Infrastructure is more favorable than TICC Capital.
Volatility & Risk
TICC Capital has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, Tortoise Energy Infrastructure has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.
Earnings and Valuation
This table compares TICC Capital and Tortoise Energy Infrastructure’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TICC Capital||$61.42 million||5.13||$43.60 million||$0.85||7.25|
|Tortoise Energy Infrastructure||N/A||N/A||N/A||N/A||N/A|
TICC Capital has higher revenue and earnings than Tortoise Energy Infrastructure.
Institutional & Insider Ownership
16.5% of TICC Capital shares are held by institutional investors. Comparatively, 29.6% of Tortoise Energy Infrastructure shares are held by institutional investors. 5.9% of TICC Capital shares are held by insiders. Comparatively, 0.3% of Tortoise Energy Infrastructure shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
TICC Capital beats Tortoise Energy Infrastructure on 6 of the 11 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 Tortoise Energy Infrastructure
Tortoise Energy Infrastructure Corporation (the Fund) is a non-diversified, closed-end management investment company. The Fund seeks a high level of total return with a focus on current distributions paid to stockholders. The Fund invests primarily in equity securities of master limited partnerships (MLPs) and their affiliates that transport, gather, process or store natural gas, natural gas liquids (NGLs), crude oil and refined petroleum products. Under normal circumstances, the Fund invests at least 90% of its total assets (including assets obtained through leverage) in securities of energy infrastructure companies and at least 70% of its total assets in equity securities of MLPs. The Fund may invest up to 30% of its total assets in restricted securities, primarily through direct placements. The Fund may invest up to 25% of its total assets in debt securities, including those rated below investment grade. Tortoise Capital Advisors, L.L.C. is the investment advisor of the Fund.
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