Elron Electronic Industries (ELRNF) & TPG Specialty Lending (TSLX) Financial Analysis

TPG Specialty Lending (NYSE:TSLX) and Elron Electronic Industries (OTCMKTS:ELRNF) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Insider & Institutional Ownership

57.8% of TPG Specialty Lending shares are owned by institutional investors. 4.4% of TPG Specialty Lending shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

TPG Specialty Lending pays an annual dividend of $1.56 per share and has a dividend yield of 7.7%. Elron Electronic Industries does not pay a dividend. TPG Specialty Lending pays out 69.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and target prices for TPG Specialty Lending and Elron Electronic Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TPG Specialty Lending 0 0 5 0 3.00
Elron Electronic Industries 0 0 0 0 N/A

TPG Specialty Lending presently has a consensus price target of $21.50, indicating a potential upside of 6.81%. Given TPG Specialty Lending’s higher probable upside, equities analysts clearly believe TPG Specialty Lending is more favorable than Elron Electronic Industries.

Earnings & Valuation

This table compares TPG Specialty Lending and Elron Electronic Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TPG Specialty Lending $261.91 million 5.04 $143.88 million $2.25 8.95
Elron Electronic Industries $11.97 million 6.58 -$25.48 million N/A N/A

TPG Specialty Lending has higher revenue and earnings than Elron Electronic Industries.

Volatility & Risk

TPG Specialty Lending has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Elron Electronic Industries has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Profitability

This table compares TPG Specialty Lending and Elron Electronic Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TPG Specialty Lending 45.44% 13.57% 7.53%
Elron Electronic Industries N/A -18.96% -17.59%

Summary

TPG Specialty Lending beats Elron Electronic Industries on 11 of the 13 factors compared between the two stocks.

About TPG Specialty Lending

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.

About Elron Electronic Industries

Elron Electronic Industries Ltd., through its subsidiaries, provides technology products in the medical devices and cyber fields. The company offers BrainsGate, a minimally invasive treatment for ischemic stroke; Pocared, an automated microbiology lab system for infectious diseases diagnosis; CartiHeal implants for cartilage and bone repair in weight bearing joints; Notal Vision, a remote monitoring of patients at risk of vision loss from age-related macular degeneration; cyber intelligence platform that detects and defuses threats before they become cyberattacks; Alcide, a security and management tools for hybrid data centers; and SecuredTouch a behavioral biometrics for mobile transactions. It also provides Ironscales, an automated phishing prevention, detection, and response platform; Cynerio, a connected medical device; Kindite, a cloud encryption solution; OpenLegacy, a platform that enables the digital transformation process; PLYmedia, a platform for ad networks; Aqwise, a biological water and wastewater treatment solutions for the industrial and municipal markets; and Atlantium, a water disinfection solution. The company was founded in 1961 and is based in Tel Aviv, Israel. Elron Electronic Industries Ltd. is a subsidiary of Discount Investment Corporation Limited.

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