TriplePoint Venture Growth BDC (NYSE: TPVG) and Moody's (NYSE:MCO) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.
This table compares TriplePoint Venture Growth BDC and Moody's’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TriplePoint Venture Growth BDC||37.33%||11.94%||5.81%|
31.9% of TriplePoint Venture Growth BDC shares are owned by institutional investors. Comparatively, 88.5% of Moody's shares are owned by institutional investors. 1.7% of TriplePoint Venture Growth BDC shares are owned by company insiders. Comparatively, 1.0% of Moody's 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.
TriplePoint Venture Growth BDC pays an annual dividend of $1.44 per share and has a dividend yield of 12.3%. Moody's pays an annual dividend of $1.76 per share and has a dividend yield of 1.1%. TriplePoint Venture Growth BDC pays out 121.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Moody's pays out 34.2% of its earnings in the form of a dividend. Moody's has raised its dividend for 8 consecutive years.
Risk & Volatility
TriplePoint Venture Growth BDC has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, Moody's has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.
Valuation & Earnings
This table compares TriplePoint Venture Growth BDC and Moody's’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TriplePoint Venture Growth BDC||$51.51 million||4.01||$19.22 million||$1.19||9.81|
|Moody's||$4.20 billion||7.42||$1.00 billion||$5.15||31.71|
Moody's has higher revenue and earnings than TriplePoint Venture Growth BDC. TriplePoint Venture Growth BDC is trading at a lower price-to-earnings ratio than Moody's, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for TriplePoint Venture Growth BDC and Moody's, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TriplePoint Venture Growth BDC||0||1||1||0||2.50|
TriplePoint Venture Growth BDC presently has a consensus target price of $14.00, suggesting a potential upside of 19.97%. Moody's has a consensus target price of $166.40, suggesting a potential upside of 1.90%. Given TriplePoint Venture Growth BDC’s stronger consensus rating and higher possible upside, analysts plainly believe TriplePoint Venture Growth BDC is more favorable than Moody's.
Moody's beats TriplePoint Venture Growth BDC on 10 of the 17 factors compared between the two stocks.
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.
Moody's Company Profile
Moody’s Corporation (Moody’s) is a provider of credit ratings; credit, capital markets and economic related research, data and analytical tools; software solutions and related risk management services, quantitative credit risk measures, financial services training and certification services, and research and analytical services to financial institution customers. The Company operates in two segments: Moody’s Investors Service (MIS) and Moody’s Analytics (MA). The MIS segment includes its ratings operations. The MA segment develops a range of products and services that support financial analysis and risk management activities of institutional participants in financial markets. The MIS segment includes corporate finance group; structured finance group; financial institutions group; public, project and infrastructure finance, and MIS Other. The MA segment consists of three lines of business: data and analytics business, enterprise risk solutions and professional service.
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