TriplePoint Venture Growth BDC (NYSE:TPVG – Get Free Report) and MarketWise (NASDAQ:MKTW – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.
Profitability
This table compares TriplePoint Venture Growth BDC and MarketWise’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TriplePoint Venture Growth BDC | 44.58% | 10.68% | 4.58% |
| MarketWise | 0.70% | -0.96% | 1.10% |
Insider & Institutional Ownership
12.8% of TriplePoint Venture Growth BDC shares are owned by institutional investors. Comparatively, 23.0% of MarketWise shares are owned by institutional investors. 1.5% of TriplePoint Venture Growth BDC shares are owned by insiders. Comparatively, 29.9% of MarketWise shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TriplePoint Venture Growth BDC | $90.93 million | 2.16 | $49.21 million | $0.99 | 4.87 |
| MarketWise | $328.12 million | 0.98 | $5.62 million | $0.88 | 23.11 |
TriplePoint Venture Growth BDC has higher earnings, but lower revenue than MarketWise. TriplePoint Venture Growth BDC is trading at a lower price-to-earnings ratio than MarketWise, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for TriplePoint Venture Growth BDC and MarketWise, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TriplePoint Venture Growth BDC | 1 | 5 | 0 | 0 | 1.83 |
| MarketWise | 0 | 1 | 1 | 0 | 2.50 |
TriplePoint Venture Growth BDC presently has a consensus price target of $5.25, suggesting a potential upside of 8.81%. Given TriplePoint Venture Growth BDC’s higher probable upside, equities analysts clearly believe TriplePoint Venture Growth BDC is more favorable than MarketWise.
Dividends
TriplePoint Venture Growth BDC pays an annual dividend of $0.92 per share and has a dividend yield of 19.1%. MarketWise pays an annual dividend of $1.00 per share and has a dividend yield of 4.9%. TriplePoint Venture Growth BDC pays out 92.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MarketWise pays out 113.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MarketWise has increased its dividend for 1 consecutive years. TriplePoint Venture Growth BDC is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility and Risk
TriplePoint Venture Growth BDC has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, MarketWise has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500.
Summary
TriplePoint Venture Growth BDC beats MarketWise on 10 of the 17 factors compared between the two stocks.
About TriplePoint Venture Growth BDC
TriplePoint Venture Growth BDC Corp. is a business development company specializing investments in venture capital-backed companies at the growth stage investments. It also provides debt financing to venture growth space companies which includes growth capital loans, secured and customized loans, equipment financings, revolving loans and direct equity investments. The fund seeks to invest in e-commerce, entertainment, technology and life sciences sector. Within technology the areas of focus include: Security, wireless communication equipments, network system and software, business applications software, conferencing equipments/services .big data, cloud computing, data storage, electronics, energy efficiency, hardware, information services, internet and media, networking, semiconductors, software, software as a service, and other technology related subsectors and within life sciences the areas of focus include: biotechnology, bio fuels/bio mass, diagnostic testing and bioinformatics, drug delivery, drug discovery, healthcare information systems, healthcare services, medical, surgical and therapeutic devices, pharmaceuticals and other life science related subsectors. Within growth capital loans it invests between $5 million and $50 million, for equipment financings it invests between $5 million and $25 million, for revolving loans it invests between $1 million and $25 million, and for direct equity investments it may invest between $0.1 million and $5 million (generally not exceeding 5% of the company’s total equity). The debt financing products are typically structured as lines of credit and it invests through warrants and secured loans. It targeted returns between 10% and 18%. It does not take board seat in the company.
About MarketWise
MarketWise, Inc. operates a content and technology multi-brand platform for self-directed investors in the United States and Internationally. Its platform includes subscription businesses that provides financial research, software, education, and tools to navigate the financial markets. The company offers various investment strategies, such as value investing, income, growth, commodities, cryptocurrencies, venture, crowdfunded investing, biotechnology, mutual funds, options, and trading; investment research product portfolio through a range of media, including desktops, laptops, tablets, and mobile; and financial newsletters. It provides a suite of stock research tools and portfolio management services under the Chaikin Analytics brand; portfolio management software tools under the TradeSmith brand name; and database of accounting-based financial summaries under the Altimetry brand. In addition, the company develops screeners, monitors, portfolio management tools, and proprietary indicators that produce a composite score to rank publicly traded companies. The company was founded in 1999 and is headquartered in Baltimore, Maryland.
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