BlackRock TCP Capital (NASDAQ:TCPC) versus Lemonade (NYSE:LMND) Financial Survey

BlackRock TCP Capital (NASDAQ:TCPC) and Lemonade (NYSE:LMND) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Earnings & Valuation

This table compares BlackRock TCP Capital and Lemonade”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BlackRock TCP Capital	$209.33 million	3.86	$38.47 million	($0.50)	-18.88
Lemonade	$493.20 million	5.13	-$236.90 million	($3.04)	-11.66

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

Volatility and Risk

BlackRock TCP Capital has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, Lemonade has a beta of 2.15, suggesting that its stock price is 115% more volatile than the S&P 500.

Insider & Institutional Ownership

80.3% of Lemonade shares are held by institutional investors. 0.2% of BlackRock TCP Capital shares are held by insiders. Comparatively, 12.5% of Lemonade shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BlackRock TCP Capital	-15.22%	14.16%	5.80%
Lemonade	-43.51%	-32.85%	-12.59%

Analyst Recommendations

This is a breakdown of current ratings and target prices for BlackRock TCP Capital and Lemonade, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlackRock TCP Capital	1	5	0	0	1.83
Lemonade	3	2	1	0	1.67

BlackRock TCP Capital presently has a consensus target price of $9.00, suggesting a potential downside of 4.66%. Lemonade has a consensus target price of $32.67, suggesting a potential downside of 7.81%. Given BlackRock TCP Capital’s stronger consensus rating and higher probable upside, equities research analysts plainly believe BlackRock TCP Capital is more favorable than Lemonade.

Summary

BlackRock TCP Capital beats Lemonade on 7 of the 13 factors compared between the two stocks.

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.

About Lemonade

Lemonade, Inc. provides various insurance products through various channels in the United States, Europe, and the United Kingdom. Its insurance products include stolen or damaged property, and personal liability that protects its customers if they are responsible for an accident or damage to another person or their property. The company also offers renters, homeowners, car, pet, and life insurance products, as well as landlord insurance policies. In addition, it operates as an agent for other insurance companies. The company was formerly known as Lemonade Group, Inc. and changed its name to Lemonade, Inc. Lemonade, Inc. was incorporated in 2015 and is headquartered in New York, New York.