TriplePoint Venture Growth BDC Corp. (TPVG) vs. The Competition Critical Comparison

TriplePoint Venture Growth BDC Corp. (NYSE: TPVG) is one of 575 public companies in the “Closed End Funds” industry, but how does it compare to its peers? We will compare TriplePoint Venture Growth BDC Corp. to related companies based on the strength of its risk, dividends, valuation, earnings, analyst recommendations, profitability and institutional ownership.

Volatility and Risk

TriplePoint Venture Growth BDC Corp. has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500. Comparatively, TriplePoint Venture Growth BDC Corp.’s peers have a beta of 0.55, indicating that their average stock price is 45% less volatile than the S&P 500.

Valuation and Earnings

This table compares TriplePoint Venture Growth BDC Corp. and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
TriplePoint Venture Growth BDC Corp. N/A N/A 7.15
TriplePoint Venture Growth BDC Corp. Competitors $57.58 million $38.86 million -0.15

TriplePoint Venture Growth BDC Corp.’s peers have higher revenue and earnings than TriplePoint Venture Growth BDC Corp.. TriplePoint Venture Growth BDC Corp. is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares TriplePoint Venture Growth BDC Corp. and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TriplePoint Venture Growth BDC Corp. 56.60% 13.05% 6.50%
TriplePoint Venture Growth BDC Corp. Competitors -23.69% 6.75% 5.26%

Dividends

TriplePoint Venture Growth BDC Corp. pays an annual dividend of $1.44 per share and has a dividend yield of 10.7%. TriplePoint Venture Growth BDC Corp. pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Closed End Funds” companies pay a dividend yield of 8.7% and pay out 87.0% of their earnings in the form of a dividend. TriplePoint Venture Growth BDC Corp. is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

38.3% of TriplePoint Venture Growth BDC Corp. shares are held by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are held by institutional investors. 1.3% of TriplePoint Venture Growth BDC Corp. shares are held by company insiders. Comparatively, 3.5% of shares of all “Closed End Funds” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for TriplePoint Venture Growth BDC Corp. and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TriplePoint Venture Growth BDC Corp. 0 1 0 0 2.00
TriplePoint Venture Growth BDC Corp. Competitors 193 1192 1414 14 2.44

TriplePoint Venture Growth BDC Corp. presently has a consensus target price of $14.00, indicating a potential upside of 3.55%. As a group, “Closed End Funds” companies have a potential upside of 39.58%. Given TriplePoint Venture Growth BDC Corp.’s peers stronger consensus rating and higher possible upside, analysts clearly believe TriplePoint Venture Growth BDC Corp. has less favorable growth aspects than its peers.

Summary

TriplePoint Venture Growth BDC Corp. beats its peers on 8 of the 14 factors compared.

TriplePoint Venture Growth BDC Corp. 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.

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