Critical Contrast: Moelis & Co (MC) and Triangle Capital (TCAP)

Moelis & Co (NYSE: MC) and Triangle Capital (NYSE:TCAP) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Insider & Institutional Ownership

66.3% of Moelis & Co shares are held by institutional investors. Comparatively, 50.1% of Triangle Capital shares are held by institutional investors. 29.9% of Moelis & Co shares are held by insiders. Comparatively, 3.5% of Triangle Capital shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Moelis & Co and Triangle Capital, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Moelis & Co 0 2 3 0 2.60
Triangle Capital 3 4 2 0 1.89

Moelis & Co currently has a consensus price target of $60.40, suggesting a potential upside of 4.68%. Triangle Capital has a consensus price target of $12.88, suggesting a potential upside of 9.11%. Given Triangle Capital’s higher probable upside, analysts clearly believe Triangle Capital is more favorable than Moelis & Co.

Dividends

Moelis & Co pays an annual dividend of $1.88 per share and has a dividend yield of 3.3%. Triangle Capital pays an annual dividend of $1.20 per share and has a dividend yield of 10.2%. Moelis & Co pays out 82.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Triangle Capital pays out 77.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Moelis & Co has increased its dividend for 3 consecutive years. Triangle Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Moelis & Co has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500. Comparatively, Triangle Capital has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Earnings & Valuation

This table compares Moelis & Co and Triangle Capital’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Moelis & Co $684.61 million 4.73 $29.40 million $2.29 25.20
Triangle Capital $123.00 million 4.61 -$28.65 million $1.55 7.61

Moelis & Co has higher revenue and earnings than Triangle Capital. Triangle Capital is trading at a lower price-to-earnings ratio than Moelis & Co, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Moelis & Co and Triangle Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Moelis & Co 8.14% 50.56% 23.86%
Triangle Capital -17.98% 10.25% 5.54%

Summary

Moelis & Co beats Triangle Capital on 14 of the 17 factors compared between the two stocks.

About Moelis & Co

Moelis & Company, an investment bank, provides strategic and financial advisory services in the United States and internationally. It advises clients in the areas of mergers and acquisitions, recapitalizations and restructurings, capital markets advisory, and other corporate finance matters. The company offers its services to public multinational corporations, governments, financial sponsors, middle market private companies, and individual entrepreneurs. It has strategic alliances with Sumitomo Mitsui Banking Corporation and SMBC Nikko Securities Inc.; and Alfaro, Dávila y Ríos, S.C. Moelis & Company was founded in 2007 and is headquartered in New York, New York.

About Triangle Capital

Triangle Capital Corporation is a business development company specializing in private equity and mezzanine investments. It focuses on leveraged buyouts, management buyouts, ESOPs, change of control transactions, acquisition financings, growth financing, and recapitalizations in lower middle market, mature, and later stage companies. The firm prefers to make investments in many business sectors including manufacturing, distribution, transportation, energy, communications, health services, restaurants, media, and others. It primarily invests in companies located throughout the United States, with an emphasis on the Southeast and Midatlantic. The firm makes equity investments between $1 million and $25 million and debt investments between $5 million and $30 million per transaction, in companies having annual revenues between $20 million and $200 million and EBITDA between $3 million and $35 million and can also co-invest. It typically makes investments between $5 million and $35 million. It primarily invests in senior subordinated debt securities secured by second lien security interests in portfolio company assets, coupled with equity interests. The firm also invests in senior debt securities secured by first lien security interests in portfolio companies. Triangle Capital Corporation was incorporated on October 10, 2006 and is based in Raleigh, North Carolina.

Receive News & Ratings for Moelis & Co Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Moelis & Co and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply