BlackRock TCP Capital (NASDAQ:TCPC) and Unico American (NASDAQ:UNAM) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
Institutional & Insider Ownership
42.8% of BlackRock TCP Capital shares are owned by institutional investors. Comparatively, 19.0% of Unico American shares are owned by institutional investors. 0.6% of BlackRock TCP Capital shares are owned by company insiders. Comparatively, 51.0% of Unico American 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.
Risk & Volatility
BlackRock TCP Capital has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Unico American has a beta of -0.48, suggesting that its stock price is 148% less volatile than the S&P 500.
This table compares BlackRock TCP Capital and Unico American’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|BlackRock TCP Capital||21.88%||11.27%||5.69%|
BlackRock TCP Capital pays an annual dividend of $1.44 per share and has a dividend yield of 10.0%. Unico American does not pay a dividend. BlackRock TCP Capital pays out 90.6% 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 recommendations for BlackRock TCP Capital and Unico American, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BlackRock TCP Capital||0||0||4||0||3.00|
BlackRock TCP Capital currently has a consensus target price of $16.88, indicating a potential upside of 16.94%. Given BlackRock TCP Capital’s higher probable upside, equities analysts clearly believe BlackRock TCP Capital is more favorable than Unico American.
Earnings & Valuation
This table compares BlackRock TCP Capital and Unico American’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BlackRock TCP Capital||$190.50 million||4.45||$45.48 million||$1.59||9.08|
|Unico American||$33.61 million||0.94||-$3.17 million||N/A||N/A|
BlackRock TCP Capital has higher revenue and earnings than Unico American.
BlackRock TCP Capital beats Unico American on 11 of the 13 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, senior secured loans, junior loans, originated loans, mezzanine, senior debt instruments, bonds, and secondary-market investments. 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. It prefers to make equity investments in companies for an ownership stake.
About Unico American
Unico American Corporation, through its subsidiaries, underwrites property and casualty insurance in Arizona, California, Nevada, Oregon, and Washington. It provides property, casualty, health, and life insurance products, as well as insurance premium financing and membership association services. The company's commercial property coverage insures against loss or damage to buildings, inventory, and equipment from natural disasters, including hurricanes, windstorms, hail, water, explosions, and severe winter weather, as well as other events, such as theft and vandalism, fires, storms, and financial loss due to business interruption resulting from covered property damage. It also provides commercial liability coverage that insures against third party liability from accidents occurring on the insured's premises or arising out of its operation; and writes policies to insure commercial property and commercial liability risks on a mono-line basis. In addition, the company offers group dental and vision insurance policies, as well as health and life insurance for individuals and groups. Unico American Corporation markets its insurance products primarily through a network of independent brokers and agents. The company was founded in 1969 and is headquartered in Calabasas, California.
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