Analyzing Tortoise Energy Infrastructure (TYG) & MVC Capital (MVC)

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MVC Capital (NYSE: TYG) and Tortoise Energy Infrastructure (NYSE:TYG) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.

Institutional and Insider Ownership

43.0% of MVC Capital shares are held by institutional investors. Comparatively, 29.9% of Tortoise Energy Infrastructure shares are held by institutional investors. 10.9% of MVC Capital shares are held by company insiders. Comparatively, 0.2% of Tortoise Energy Infrastructure shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for MVC Capital and Tortoise Energy Infrastructure, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MVC Capital 0 0 2 0 3.00
Tortoise Energy Infrastructure 0 0 0 0 N/A

MVC Capital currently has a consensus price target of $12.25, indicating a potential upside of 31.30%. Given MVC Capital’s higher probable upside, research analysts clearly believe MVC Capital is more favorable than Tortoise Energy Infrastructure.

Profitability

This table compares MVC Capital and Tortoise Energy Infrastructure’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MVC Capital 74.18% -0.65% -0.44%
Tortoise Energy Infrastructure N/A N/A N/A

Dividends

MVC Capital pays an annual dividend of $0.60 per share and has a dividend yield of 6.4%. Tortoise Energy Infrastructure pays an annual dividend of $2.62 per share and has a dividend yield of 9.1%. MVC Capital pays out -176.5% of its earnings in the form of a dividend.

Volatility and Risk

MVC Capital has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Tortoise Energy Infrastructure has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.

Earnings & Valuation

This table compares MVC Capital and Tortoise Energy Infrastructure’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MVC Capital $20.10 million 8.74 $27.32 million ($0.34) -27.44
Tortoise Energy Infrastructure N/A N/A N/A N/A N/A

MVC Capital has higher revenue and earnings than Tortoise Energy Infrastructure.

Summary

MVC Capital beats Tortoise Energy Infrastructure on 7 of the 11 factors compared between the two stocks.

About MVC Capital

MVC Capital, Inc. is a business development company specializing in equity, acquisition financing, mezzanine financing, management buyouts, leveraged buildups, corporate partnerships, PIPE transactions, going private transactions, private company recapitalizations, operational turnarounds, and growth and expansion capital transaction financing. The company seeks to invest in mature, small, and middle-market companies. It seeks to invest in companies in the consumer products, business services, industrial manufacturing and services, automotive retailing, energy, food and food service, financial services, insurance, industrial distribution and value-added distribution, medical devices and equipment, specialty chemicals, and security sectors. The company prefers to invest in companies based in the United States. The firm typically invests between $3 million and $25 million for control and non-control stakes in companies with revenues between $10 million and $150 million and EBITDA between $3 million and $25 million. It prefers to be the lead investor in transactions and also co-invests in companies with other private equity sponsors. The company invests in the form of preferred and common equity, and warrants or rights to acquire equity interests; bridge loans; term loans; debt; cash flow loans; senior and subordinated loans; convertible securities; venture capital; mezzanine; and private equity investments. It exits its investments in the form of maturity of loan, public offering, sale, mergers and acquisitions, and financial recapitalizations. It prefers to take majority stake in companies.

About Tortoise Energy Infrastructure

There is no company description available for Tortoise Energy Infrastructure Corporation.

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