Reviewing Western Asset Mortgage Capital Corporation (WMC)’s and TPG Specialty Lending Inc. (NYSE:TSLX)’s results

As Mortgage Investment businesses, Western Asset Mortgage Capital Corporation (NYSE:WMC) and TPG Specialty Lending Inc. (NYSE:TSLX), are affected by compare. This especially applies to their institutional ownership, profitability, risk, dividends, analyst recommendations, earnings and valuation.

Valuation and Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Western Asset Mortgage Capital Corporation 89.21M 5.37 65.28M 1.56 6.35
TPG Specialty Lending Inc. 236.00M 5.59 131.53M 1.93 10.15

Table 1 showcases the gross revenue, earnings per share and valuation of Western Asset Mortgage Capital Corporation and TPG Specialty Lending Inc. TPG Specialty Lending Inc. seems to has higher revenue and earnings compared to Western Asset Mortgage Capital Corporation. Business that currently has a lower P/E ratio means that it is the more affordable of the two businesses. Western Asset Mortgage Capital Corporation has been trading at a lower P/E ratio than TPG Specialty Lending Inc., which means that it is at the moment the more affordable of the two companies.

Profitability

Table 2 shows Western Asset Mortgage Capital Corporation and TPG Specialty Lending Inc.’s return on equity, net margins and return on assets.

Net Margins Return on Equity Return on Assets
Western Asset Mortgage Capital Corporation 73.18% 13.6% 1.3%
TPG Specialty Lending Inc. 55.73% 0% 0%

Dividends

Western Asset Mortgage Capital Corporation dividend pay is $1.24 per share with 12.49% dividend yield annually. TPG Specialty Lending Inc. offers an annual dividend of $1.79 per share, bundled with 8.96% dividend yield.

Institutional & Insider Ownership

The shares of both Western Asset Mortgage Capital Corporation and TPG Specialty Lending Inc. are owned by institutional investors at 47.4% and 64.19% respectively. Insiders held 0.2% of Western Asset Mortgage Capital Corporation shares. Competitively, 0.32% are TPG Specialty Lending Inc.’s share held by insiders.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Western Asset Mortgage Capital Corporation -2.08% -3.23% -12.8% -8.77% -1.79% -0.7%
TPG Specialty Lending Inc. -3.25% -4.71% -1.71% 6.86% -3.68% 0.27%

For the past year Western Asset Mortgage Capital Corporation has -0.7% weaker performance while TPG Specialty Lending Inc. has 0.27% stronger performance.

Summary

TPG Specialty Lending Inc. beats on 11 of the 14 factors Western Asset Mortgage Capital Corporation.

TPG Specialty Lending, Inc. is a business development company. The fund provides senior secured loans (first-lien, second-lien, and unitranche), mezzanine debt, non-control structured equity, and common equity with a focus on co-investments for organic growth, acquisitions, market or product expansion, restructuring initiatives, recapitalizations, and refinancing. The fund invests in business services, software & technology, healthcare, energy, consumer & retail, manufacturing, industrials, royalty related businesses, education, and specialty finance. It seeks to finance middle market companies principally located in the United States. The fund invests in companies with enterprise value between $50 million and $1 billion or more and EBITDA between $10 million and $250 million. The transaction size is between $15 million and $350 million. The fund invests across the spectrum of the capital structure and can arrange syndicated transactions of up to $500 million and hold sizeable positions within its credits.