BlackRock TCP Capital vs Compass Diversified

This page compares BlackRock TCP Capital and Compass Diversified Holdings, outlining their business models, financial performance, and market context to provide a neutral, accessible overview. It presents facts and context without recommendation, helping readers form their own understanding. Educational content, not financial advice.

This page compares BlackRock TCP Capital and Compass Diversified Holdings, outlining their business models, financial performance, and market context to provide a neutral, accessible overview. It pres...

Comparison Snapshot

Key Financial Metrics

TCPC

Metric

CODI

$485.29M

Market Cap

$394.24M

52.21%

Potential Profit

306.65%

Hold

Analyst Rating

Buy

Investment Analysis

BlackRock TCP Capital

TCPC

Pros

Specializes in middle-market lending with over 20 years of private credit investment experience across multiple market cycles.
Pays a high dividend yield of around 19.5%-21.4%, attractive for income-focused investors.
Managed by BlackRock, leveraging expertise in debt securities, senior secured loans, and private credit investments.

Considerations

Reported a net loss of approximately $12 million recently, with a negative earnings per share showing profitability challenges.
Current analyst consensus is a 'Sell' rating with a modest 12-month price appreciation target of 16.6%.
Stock price has declined significantly from its 52-week high, indicating volatility and potential market concerns about performance or risk.

Compass Diversified

CODI

Pros

Compass Diversified Holdings owns a diversified portfolio of branded consumer companies providing stable and diversified revenue streams.
Has a history of consistent dividend payments to shareholders, supporting a steady income profile.
Experienced management team focused on operational improvements and strategic acquisitions to drive growth.

Considerations

Exposed to consumer discretionary sectors that can be cyclical and sensitive to economic downturns and changing consumer preferences.
Face execution risks related to integrating acquisitions and managing a diverse portfolio amid competitive pressures.
May experience regulatory and macroeconomic headwinds impacting retail and consumer goods sectors, affecting profitability.

About The Companies

BlackRock TCP Capital (TCPC)

TCP Capital Corp (TCPC) is a publicly traded business development company (BDC) that provides financing solutions to small and mid-sized businesses, primarily in the United States. With a market capitalisation of about $487.26 million, TCPC typically generates income from interest, fees and other finance-related returns, making it of interest to investors seeking yield. Like other BDCs, it uses leverage and active credit selection to try to enhance returns, which can increase both income and volatility. Key considerations for investors include sensitivity to interest-rate movements, borrower credit quality and potential net asset value (NAV) variability. While BDCs can offer attractive income streams, they also bring liquidity and credit risks and may experience dividend reductions during stressed markets. This summary is educational only and not personal financial advice; investors should assess suitability, review up-to-date company filings, and consider consulting a regulated adviser before making investment decisions.

Compass Diversified (CODI)

Compass Diversified Holdings (CODI) is a publicly traded, listed private equity company that invests in and operates middle‑market businesses across consumer, industrial and niche sectors. CODI typically acquires significant or controlling stakes and pursues operational improvement, cost optimisation and strategic bolt‑on deals to grow cash flow over time. Its listed structure gives public investors exposure to private-company economics, though portfolio valuations can be complex and periodic realisations or refinancing events often drive returns. With a market capitalisation around $605m, CODI’s shares can be sensitive to asset valuations, leverage and macroeconomic shifts. Investors should be mindful that distributions are not guaranteed, fees and transaction costs apply, and liquidity can be lower than for traditional public equities. This is general educational information, not personal financial advice; suitability depends on your goals and risk tolerance — consider consulting a regulated financial adviser.

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Which Baskets Do They Appear In?

Corporate Dragons: The Fortresses

Meet the financial titans built on massive cash reserves and minimal debt. These carefully selected companies offer exceptional stability during economic turbulence, giving your portfolio a strong defensive anchor when markets get rough.

Published: June 17, 2025

Explore Basket

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Comparison Snapshot