Orchid Island Capital (NYSE:ORC – Get Free Report) and Vinci Compass Investments (NASDAQ:VINP – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.
Valuation and Earnings
This table compares Orchid Island Capital and Vinci Compass Investments”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Orchid Island Capital | $414.00 million | 3.06 | $159.03 million | $1.48 | 4.29 |
| Vinci Compass Investments | $175.01 million | 3.57 | $38.97 million | $0.70 | 13.64 |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Orchid Island Capital and Vinci Compass Investments, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Orchid Island Capital | 1 | 2 | 0 | 0 | 1.67 |
| Vinci Compass Investments | 0 | 2 | 2 | 0 | 2.50 |
Orchid Island Capital currently has a consensus target price of $7.50, suggesting a potential upside of 18.17%. Vinci Compass Investments has a consensus target price of $13.50, suggesting a potential upside of 41.39%. Given Vinci Compass Investments’ stronger consensus rating and higher possible upside, analysts clearly believe Vinci Compass Investments is more favorable than Orchid Island Capital.
Profitability
This table compares Orchid Island Capital and Vinci Compass Investments’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Orchid Island Capital | N/A | 11.87% | 1.35% |
| Vinci Compass Investments | 23.77% | 12.65% | 6.67% |
Insider & Institutional Ownership
32.7% of Orchid Island Capital shares are owned by institutional investors. Comparatively, 34.1% of Vinci Compass Investments shares are owned by institutional investors. 0.3% of Orchid Island Capital shares are owned by company insiders. Comparatively, 49.3% of Vinci Compass Investments shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Orchid Island Capital has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500. Comparatively, Vinci Compass Investments has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500.
Dividends
Orchid Island Capital pays an annual dividend of $1.20 per share and has a dividend yield of 18.9%. Vinci Compass Investments pays an annual dividend of $0.68 per share and has a dividend yield of 7.1%. Orchid Island Capital pays out 81.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vinci Compass Investments pays out 97.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Orchid Island Capital has raised its dividend for 1 consecutive years. Orchid Island Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Vinci Compass Investments beats Orchid Island Capital on 10 of the 17 factors compared between the two stocks.
About Orchid Island Capital
Orchid Island Capital, Inc., a specialty finance company, invests in residential mortgage-backed securities (RMBS) in the United States. The company’s RMBS is backed by single-family residential mortgage loans, referred as Agency RMBS. Its portfolio includes traditional pass-through Agency RMBS, such as mortgage pass through certificates and collateralized mortgage obligations; and structured Agency RMBS comprising interest only securities, inverse interest only securities, and principal only securities. The company has elected to be taxed as a real estate investment trust (REIT) for the United States federal income tax purposes. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to stockholders, if it annually distributes dividends equal to at least 90% of its REIT taxable income to its stockholders. Orchid Island Capital, Inc. was incorporated in 2010 and is headquartered in Vero Beach, Florida.
About Vinci Compass Investments
Vinci Partners Investments Ltd. operates as an asset management firm in Brazil. The company focuses on private markets, liquid strategies, investment products and solutions, and retirement services. It offers private equity, infrastructure, real estate, credit, special situations, equities, hedge funds, and investment products and solutions comprising portfolio and management services. In addition, the company financial and strategic advisory services, focusing on IPO advisory and mergers and acquisition transactions to entrepreneurs, corporate senior management teams, and boards of directors. Vinci Partners Investments Ltd. was founded in 2009 and is based in Rio de Janeiro, Brazil.
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