TPG (NASDAQ:TPG) and Barings Corporate Investors (NYSE:MCI) Financial Contrast
by Danessa Lincoln · The Markets DailyTPG (NASDAQ:TPG – Get Free Report) and Barings Corporate Investors (NYSE:MCI – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Institutional and Insider Ownership
94.0% of TPG shares are held by institutional investors. 70.0% of TPG shares are held by company insiders. Comparatively, 1.1% of Barings Corporate Investors shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Dividends
TPG pays an annual dividend of $2.36 per share and has a dividend yield of 5.6%. Barings Corporate Investors pays an annual dividend of $1.60 per share and has a dividend yield of 9.2%. TPG pays out 1,072.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for TPG and Barings Corporate Investors, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TPG | 1 | 4 | 12 | 0 | 2.65 |
| Barings Corporate Investors | 0 | 0 | 0 | 0 | 0.00 |
TPG presently has a consensus target price of $61.75, indicating a potential upside of 46.50%. Given TPG’s stronger consensus rating and higher probable upside, equities analysts plainly believe TPG is more favorable than Barings Corporate Investors.
Profitability
This table compares TPG and Barings Corporate Investors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TPG | 3.81% | 28.13% | 8.25% |
| Barings Corporate Investors | N/A | N/A | N/A |
Volatility and Risk
TPG has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Barings Corporate Investors has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.
Earnings & Valuation
This table compares TPG and Barings Corporate Investors”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TPG | $4.67 billion | 3.47 | $184.59 million | $0.22 | 191.59 |
| Barings Corporate Investors | $30.18 million | 11.81 | N/A | N/A | N/A |
TPG has higher revenue and earnings than Barings Corporate Investors.
Summary
TPG beats Barings Corporate Investors on 10 of the 13 factors compared between the two stocks.
About TPG
TPG Inc. operates as an alternative asset manager in the United States and internationally. The company offers investment management services to TPG Funds, limited partners, and other vehicles. It also offers monitoring services to portfolio companies; advisory, debt and equity arrangement, and underwriting and placement services; and capital structuring and other advisory services to portfolio companies. In addition, the company invests in private equity funds, real estate funds, hedge funds, and credit funds. TPG Inc. was founded in 1992 and is based in Fort Worth, Texas. The company operates as a subsidiary of TPG GP A, LLC.
About Barings Corporate Investors
Babson Capital Corporate Investors trust is a closed ended fixed income mutual fund launched and managed by Barings LLC. It invests in fixed income markets of the United States. The fund seeks to invest in securities of companies operating across diversified sectors. It primarily invests in a portfolio of privately placed, below-investment grade, long term corporate debt obligations. The fund also invests in marketable investment grade debt securities, other marketable debt securities, and marketable common stocks. It was formerly known as Babson Capital Corporate Investors. Babson Capital Corporate Investors trust was formed in 1971 and is domiciled in the United States.