Critical Survey: Finance of America Companies (NYSE:FOA) and Nuveen Churchill Direct Lending (NYSE:NCDL)

Finance of America Companies (NYSE:FOA) and Nuveen Churchill Direct Lending (NYSE:NCDL) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Profitability

This table compares Finance of America Companies and Nuveen Churchill Direct Lending’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Finance of America Companies	N/A	-13.19%	-0.14%
Nuveen Churchill Direct Lending	46.95%	11.91%	4.89%

Valuation and Earnings

This table compares Finance of America Companies and Nuveen Churchill Direct Lending’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Finance of America Companies	$234.25 million	0.22	-$80.09 million	($1.06)	-0.51
Nuveen Churchill Direct Lending	$161.76 million	5.94	$75.94 million	N/A	N/A

Nuveen Churchill Direct Lending has lower revenue, but higher earnings than Finance of America Companies.

Insider & Institutional Ownership

97.2% of Finance of America Companies shares are owned by institutional investors. 15.6% of Finance of America Companies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Finance of America Companies and Nuveen Churchill Direct Lending, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Finance of America Companies	0	1	2	0	2.67
Nuveen Churchill Direct Lending	0	3	3	0	2.50

Finance of America Companies currently has a consensus target price of $1.80, indicating a potential upside of 233.33%. Nuveen Churchill Direct Lending has a consensus target price of $18.50, indicating a potential upside of 5.47%. Given Finance of America Companies’ stronger consensus rating and higher probable upside, research analysts plainly believe Finance of America Companies is more favorable than Nuveen Churchill Direct Lending.

Summary

Nuveen Churchill Direct Lending beats Finance of America Companies on 6 of the 11 factors compared between the two stocks.

About Finance of America Companies

Finance of America Companies Inc. a financial service holding company, through its subsidiaries, engages in the operation of a retirement solutions platform in the United States. It operates through two segments: Retirement Solutions and Portfolio Management. The Retirement Solutions segment engages in the loan origination activities comprising home equity conversion, proprietary reverse, and hybrid mortgage loans for senior homeowners. The Portfolio Management segment provides product development, loan securitization, loan sales, risk management, servicing oversight, and asset management services for borrowers and investors. The company was founded in 2013 and is headquartered in Plano, Texas.

About Nuveen Churchill Direct Lending

Nuveen Churchill Direct Lending Corp. is a specialty finance company focused primarily on investing in senior secured loans to private equity-owned U.S. middle market companies. It has elected to be regulated as a business development company. Nuveen Churchill Direct Lending Corp. is based in NEW YORK.