BlackRock TCP Capital (NASDAQ:TCPC) and Horace Mann Educators (NYSE:HMN) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
Earnings and Valuation
This table compares BlackRock TCP Capital and Horace Mann Educators’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BlackRock TCP Capital||$195.17 million||2.95||$30.58 million||$1.61||6.19|
|Horace Mann Educators||$1.43 billion||1.02||$184.44 million||$2.20||15.99|
Horace Mann Educators has higher revenue and earnings than BlackRock TCP Capital. BlackRock TCP Capital is trading at a lower price-to-earnings ratio than Horace Mann Educators, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
BlackRock TCP Capital has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500. Comparatively, Horace Mann Educators has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.
This is a summary of current ratings for BlackRock TCP Capital and Horace Mann Educators, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BlackRock TCP Capital||0||2||3||0||2.60|
|Horace Mann Educators||0||0||1||0||3.00|
BlackRock TCP Capital currently has a consensus target price of $11.63, suggesting a potential upside of 16.60%. Horace Mann Educators has a consensus target price of $45.00, suggesting a potential upside of 27.95%. Given Horace Mann Educators’ stronger consensus rating and higher possible upside, analysts clearly believe Horace Mann Educators is more favorable than BlackRock TCP Capital.
Insider and Institutional Ownership
31.4% of BlackRock TCP Capital shares are held by institutional investors. Comparatively, 99.0% of Horace Mann Educators shares are held by institutional investors. 0.7% of BlackRock TCP Capital shares are held by company insiders. Comparatively, 2.6% of Horace Mann Educators shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares BlackRock TCP Capital and Horace Mann Educators’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|BlackRock TCP Capital||-33.37%||12.22%||5.39%|
|Horace Mann Educators||11.98%||6.45%||0.81%|
BlackRock TCP Capital pays an annual dividend of $1.44 per share and has a dividend yield of 14.4%. Horace Mann Educators pays an annual dividend of $1.20 per share and has a dividend yield of 3.4%. BlackRock TCP Capital pays out 89.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Horace Mann Educators pays out 54.5% of its earnings in the form of a dividend. Horace Mann Educators has increased its dividend for 11 consecutive years.
Horace Mann Educators beats BlackRock TCP Capital on 11 of the 17 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 Horace Mann Educators
Horace Mann Educators Corporation, through its subsidiaries, operates as a multiline insurance company in the United States. The Company operates through four segments: Property and Casualty, Retirement, Life, and Corporate and Other. It underwrites and markets personal lines of property and casualty insurance, including personal lines automobile and property insurance products; retirement products, such as tax-qualified fixed and variable annuities; and life insurance products. The company markets its products through its sales force of full-time exclusive distributors and independent agents to K-12 teachers, administrators, and other employees of public schools and their families. Horace Mann Educators Corporation was founded in 1945 and is headquartered in Springfield, Illinois.
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