Contrasting Finance of America Companies (NYSE:FOA) and Nuveen Churchill Direct Lending (NYSE:NCDL)

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

Institutional and Insider Ownership

97.2% of Finance of America Companies shares are owned by institutional investors. 16.7% of Finance of America Companies shares are owned by insiders. Comparatively, 0.5% of Nuveen Churchill Direct Lending shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Finance of America Companies	$234.25 million	0.27	-$80.09 million	($1.06)	-0.61
Nuveen Churchill Direct Lending	$82.09 million	11.69	$75.94 million	N/A	N/A

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Finance of America Companies and Nuveen Churchill Direct Lending, as provided by MarketBeat.

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

Finance of America Companies presently has a consensus price target of $1.80, indicating a potential upside of 179.20%. Nuveen Churchill Direct Lending has a consensus price target of $18.50, indicating a potential upside of 5.65%. Given Finance of America Companies’ stronger consensus rating and higher probable upside, equities analysts plainly 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 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.

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.