Triplepoint Venture Growth BDC (NYSE:TPVG) and Portman Ridge Finance (NASDAQ:PTMN) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.
Insider & Institutional Ownership
31.0% of Triplepoint Venture Growth BDC shares are owned by institutional investors. Comparatively, 22.0% of Portman Ridge Finance shares are owned by institutional investors. 1.7% of Triplepoint Venture Growth BDC shares are owned by company insiders. Comparatively, 6.3% of Portman Ridge Finance shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock 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 10.4%. Portman Ridge Finance pays an annual dividend of $0.40 per share and has a dividend yield of 15.6%. Triplepoint Venture Growth BDC pays out 84.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Portman Ridge Finance pays out 148.1% 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 table compares Triplepoint Venture Growth BDC and Portman Ridge Finance’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Triplepoint Venture Growth BDC||57.09%||12.50%||7.94%|
|Portman Ridge Finance||-88.64%||3.28%||1.88%|
Earnings and Valuation
This table compares Triplepoint Venture Growth BDC and Portman Ridge Finance’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Triplepoint Venture Growth BDC||$64.65 million||5.29||$36.56 million||$1.71||8.08|
|Portman Ridge Finance||$27.09 million||3.54||-$9.57 million||$0.27||9.52|
Triplepoint Venture Growth BDC has higher revenue and earnings than Portman Ridge Finance. Triplepoint Venture Growth BDC is trading at a lower price-to-earnings ratio than Portman Ridge Finance, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for Triplepoint Venture Growth BDC and Portman Ridge Finance, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Triplepoint Venture Growth BDC||0||2||1||0||2.33|
|Portman Ridge Finance||0||0||0||0||N/A|
Triplepoint Venture Growth BDC currently has a consensus price target of $14.25, indicating a potential upside of 3.19%. Given Triplepoint Venture Growth BDC’s higher possible upside, equities research analysts clearly believe Triplepoint Venture Growth BDC is more favorable than Portman Ridge Finance.
Volatility and Risk
Triplepoint Venture Growth BDC has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Portman Ridge Finance has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.
Triplepoint Venture Growth BDC beats Portman Ridge Finance on 12 of the 15 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 Portman Ridge Finance
Portman Ridge Finance Corp. is a private equity fund and non-diversified closed-end investment company that invests in middle market companies generating consistent cash flows located in North America. It targets companies operating across a broad range of sectors such as aerospace and defense, automotive, beverage, food and tobacco, broadcasting and entertainment, buildings and real estate, personal and cargo transport, chemicals, plastics and rubber, containers, packaging and glass, diversified or conglomerate service, ecological, electronics, finance, and healthcare. The company was founded on August 8, 2006 and is headquartered in New York, NY.
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