Nuveen Churchill Direct Lending (NYSE:NCDL) vs. Finance of America Companies (NYSE:FOA) Head to Head Review

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

Insider and Institutional Ownership

97.2% of Finance of America Companies shares are held by institutional investors. 0.5% of Nuveen Churchill Direct Lending shares are held by company insiders. Comparatively, 15.6% of Finance of America Companies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nuveen Churchill Direct Lending	$161.76 million	5.96	$75.94 million	N/A	N/A
Finance of America Companies	$177.03 million	0.34	-$80.09 million	($1.06)	-0.58

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

Analyst Recommendations

This is a breakdown of current recommendations for Nuveen Churchill Direct Lending and Finance of America Companies, as reported by MarketBeat.

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

Nuveen Churchill Direct Lending presently has a consensus price target of $18.50, suggesting a potential upside of 5.23%. Finance of America Companies has a consensus price target of $1.80, suggesting a potential upside of 190.42%. Given Finance of America Companies’ stronger consensus rating and higher probable upside, analysts clearly 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 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.

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.