Critical Comparison: Technology Investment Capital (OXSQ) versus Its Peers

Technology Investment Capital (NASDAQ: OXSQ) is one of 133 public companies in the “Investment offices, not elsewhere classified” industry, but how does it contrast to its peers? We will compare Technology Investment Capital to related businesses based on the strength of its risk, earnings, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Institutional & Insider Ownership

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16.5% of Technology Investment Capital shares are owned by institutional investors. Comparatively, 20.4% of shares of all “Investment offices, not elsewhere classified” companies are owned by institutional investors. 5.9% of Technology Investment Capital shares are owned by insiders. Comparatively, 5.4% of shares of all “Investment offices, not elsewhere classified” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Technology Investment Capital and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Technology Investment Capital 71.02% 7.71% 5.36%
Technology Investment Capital Competitors -18.51% 6.56% 3.86%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Technology Investment Capital and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Technology Investment Capital 2 0 1 0 1.67
Technology Investment Capital Competitors 93 420 468 4 2.39

Technology Investment Capital presently has a consensus target price of $5.50, suggesting a potential downside of 9.54%. As a group, “Investment offices, not elsewhere classified” companies have a potential upside of 1.44%. Given Technology Investment Capital’s peers stronger consensus rating and higher probable upside, analysts plainly believe Technology Investment Capital has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Technology Investment Capital and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Technology Investment Capital $61.42 million $43.60 million 10.13
Technology Investment Capital Competitors $84.46 million $42.33 million 5.03

Technology Investment Capital’s peers have higher revenue, but lower earnings than Technology Investment Capital. Technology Investment Capital is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Technology Investment Capital pays an annual dividend of $0.80 per share and has a dividend yield of 13.2%. Technology Investment Capital pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Investment offices, not elsewhere classified” companies pay a dividend yield of 9.4% and pay out 110.5% of their earnings in the form of a dividend.

Volatility and Risk

Technology Investment Capital has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Technology Investment Capital’s peers have a beta of 0.44, suggesting that their average share price is 56% less volatile than the S&P 500.

Summary

Technology Investment Capital peers beat Technology Investment Capital on 8 of the 15 factors compared.

Technology Investment Capital Company Profile

TICC Capital Corp. is a business development company, operates as a closed-end, non-diversified management investment company. The firm invests in both public and private companies. It invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, and common stock. The firm primarily invests in debt and/or equity securities of technology-related companies that operate in the computer software, Internet, information technology infrastructure and services, media, telecommunications and telecommunications equipment, semiconductors, hardware, technology-enabled services, semiconductor capital equipment, medical device technology, diversified technology, and networking systems sectors. It concentrates its investments in companies having annual revenues of less than $200 million and a market capitalization or enterprise value of less than $300 million. The firm invests between $5 million and $30 million per transaction. It seeks to exit its investments within 7 years. It serves as the investment adviser to TICC. TICC Capital Corp., formerly known as Technology Investment Capital Corp., was founded in 2003 and is headquartered in Greenwich, Connecticut.

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