Head-To-Head Survey: Amalgamated Financial (NASDAQ:AMAL) versus Blackrock Tcp Capital (NASDAQ:TCPC)

Amalgamated Financial (NASDAQ:AMAL) and Blackrock Tcp Capital (NASDAQ:TCPC) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Risk & Volatility

Amalgamated Financial has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Blackrock Tcp Capital has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Insider and Institutional Ownership

75.9% of Amalgamated Financial shares are owned by institutional investors. 1.3% of Amalgamated Financial shares are owned by insiders. Comparatively, 0.2% of Blackrock Tcp Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Amalgamated Financial pays an annual dividend of $0.56 per share and has a dividend yield of 2.0%. Blackrock Tcp Capital pays an annual dividend of $1.00 per share and has a dividend yield of 14.0%. Amalgamated Financial pays out 16.8% of its earnings in the form of a dividend. Blackrock Tcp Capital pays out -588.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Amalgamated Financial has raised its dividend for 4 consecutive years. Blackrock Tcp Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Amalgamated Financial and Blackrock Tcp Capital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amalgamated Financial	$434.51 million	1.97	$106.43 million	$3.34	8.51
Blackrock Tcp Capital	$259.44 million	2.34	-$63.14 million	($0.17)	-41.94

Amalgamated Financial has higher revenue and earnings than Blackrock Tcp Capital. Blackrock Tcp Capital is trading at a lower price-to-earnings ratio than Amalgamated Financial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Amalgamated Financial and Blackrock Tcp Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amalgamated Financial	23.60%	15.21%	1.31%
Blackrock Tcp Capital	-4.98%	15.12%	6.14%

Analyst Recommendations

This is a breakdown of recent recommendations for Amalgamated Financial and Blackrock Tcp Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amalgamated Financial	1	0	1	0	2.00
Blackrock Tcp Capital	1	1	0	0	1.50

Amalgamated Financial currently has a consensus target price of $33.00, suggesting a potential upside of 16.03%. Blackrock Tcp Capital has a consensus target price of $6.75, suggesting a potential downside of 5.33%. Given Amalgamated Financial’s stronger consensus rating and higher possible upside, equities analysts clearly believe Amalgamated Financial is more favorable than Blackrock Tcp Capital.

Summary

Amalgamated Financial beats Blackrock Tcp Capital on 12 of the 17 factors compared between the two stocks.

About Amalgamated Financial

Amalgamated Financial Corp. operates as the bank holding company for Amalgamated Bank that provides commercial and retail banking, investment management, and trust and custody services for commercial and retail customers in the United States. The company accepts various deposit products, including non-interest bearing accounts, interest-bearing demand products, savings accounts, money market accounts, NOW accounts, and certificates of deposit. It also provides various commercial loans comprising commercial and industrial, multifamily mortgage, and commercial real estate loans; residential mortgage loans; and retail loans, such as residential real estate, consumer solar, and consumer and other loans. In addition, the company offers online banking, bill payment, online cash management, and safe deposit box rental services; debit and ATM cards; and trust, custody, and investment management services comprising asset safekeeping, corporate actions, income collections, proxy, account transition, asset transfers, and conversion management services. Further, it provides investment products, such as funds spanning equity, fixed-income, real estate, and alternative investment products; and brokerage, asset management, and insurance products. Amalgamated Financial Corp. was founded in 1923 and is headquartered in New York, New York.

About Blackrock Tcp Capital

BlackRock TCP Capital Corp. is a business development company specializing in direct equity and debt investments in middle-market, small businesses, debt securities, senior secured loans, junior loans, originated loans, mezzanine, senior debt instruments, bonds, and secondary-market investments. It typically invests in communication services, public relations services, television, wireless telecommunication services, apparel, textile mills, restaurants, retailing, energy, oil and gas extraction, Patent owners and Lessors, Federal and Federally- Sponsored Credit agencies, insurance, hospital and healthcare centers, Biotechnology, engineering services, heavy electrical equipment, tax accounting, scientific and related consulting services, charter freight air transportation, Information technology consulting, application hosting services, software diagram and design, computer aided design, communication equipment, electronics manufacturing equipment, computer components, chemicals. It seeks to invest in the United States. The fund typically invests between $10 million and $35 million in companies with enterprise values between $100 million and $1500 million including complex situations. It prefers to make equity investments in companies for an ownership stake.