Comparing Everest Group (NYSE:EG) & BlackRock TCP Capital (NASDAQ:TCPC)

Everest Group (NYSE:EGGet Free Report) and BlackRock TCP Capital (NASDAQ:TCPCGet Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Dividends

Everest Group pays an annual dividend of $7.00 per share and has a dividend yield of 1.8%. BlackRock TCP Capital pays an annual dividend of $1.36 per share and has a dividend yield of 13.1%. Everest Group pays out 11.7% of its earnings in the form of a dividend. BlackRock TCP Capital pays out 206.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BlackRock TCP Capital has raised its dividend for 2 consecutive years. BlackRock TCP Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

92.6% of Everest Group shares are held by institutional investors. 1.4% of Everest Group shares are held by company insiders. Comparatively, 0.3% of BlackRock TCP Capital shares are held 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.

Analyst Ratings

This is a breakdown of current recommendations for Everest Group and BlackRock TCP Capital, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everest Group 0 3 3 1 2.71
BlackRock TCP Capital 0 5 0 0 2.00

Everest Group presently has a consensus target price of $434.67, indicating a potential upside of 9.82%. BlackRock TCP Capital has a consensus target price of $11.25, indicating a potential upside of 8.38%. Given Everest Group’s stronger consensus rating and higher probable upside, analysts plainly believe Everest Group is more favorable than BlackRock TCP Capital.

Profitability

This table compares Everest Group and BlackRock TCP Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Everest Group 17.26% 25.05% 6.10%
BlackRock TCP Capital 18.38% 14.59% 6.09%

Risk and Volatility

Everest Group has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, BlackRock TCP Capital has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500.

Valuation and Earnings

This table compares Everest Group and BlackRock TCP Capital’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Everest Group $14.46 billion 1.19 $2.52 billion $59.73 6.63
BlackRock TCP Capital $209.33 million N/A $38.47 million $0.66 15.73

Everest Group has higher revenue and earnings than BlackRock TCP Capital. Everest Group is trading at a lower price-to-earnings ratio than BlackRock TCP Capital, indicating that it is currently the more affordable of the two stocks.

Summary

Everest Group beats BlackRock TCP Capital on 12 of the 17 factors compared between the two stocks.

About Everest Group

(Get Free Report)

Everest Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Europe, and internationally. The company operates through two segment, Insurance and Reinsurance. The Reinsurance segment writes property and casualty reinsurance; and specialty lines of business through reinsurance brokers, as well as directly with ceding companies in the United States, Bermuda, Ireland, Canada, Singapore, Switzerland, and the United Kingdom. The Insurance Operations segment writes property and casualty insurance directly, as well as through brokers, surplus lines, and general agents in the United States, Bermuda, Canada, Europe, South America, Singapore, France, Germany, Spain, Canada, Chile, the United Kingdom, Ireland, and the Netherlands. The company also provides treaty and facultative reinsurance products; admitted and non-admitted insurance products; and accident and health, specialty underwriters, eversports and entertainment, and surety and credit, marine and aviation, as well as structured and property hybrid solutions. In addition, it offers commercial property and casualty insurance products through wholesale and retail brokers, surplus lines brokers, and program administrators. The company was formerly known as Everest Re Group, Ltd. and changed its name to Everest Group, Ltd. in July 2023.Everest Group, Ltd., was founded in 1973 and is headquartered in Hamilton, Bermuda.

About BlackRock TCP Capital

(Get Free Report)

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.

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