Finance of America Companies (NYSE:FOA) versus Nuveen Churchill Direct Lending (NYSE:NCDL) Head to Head Comparison

Nuveen Churchill Direct Lending (NYSE:NCDL) and Finance of America Companies (NYSE:FOA) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Nuveen Churchill Direct Lending and Finance of America Companies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nuveen Churchill Direct Lending	0	3	3	0	2.50
Finance of America Companies	0	1	2	0	2.67

Nuveen Churchill Direct Lending presently has a consensus target price of $18.50, indicating a potential upside of 5.47%. Finance of America Companies has a consensus target price of $1.80, indicating a potential upside of 233.33%. Given Finance of America Companies’ stronger consensus rating and higher possible upside, analysts clearly believe Finance of America Companies is more favorable than Nuveen Churchill Direct Lending.

Valuation & Earnings

This table compares Nuveen Churchill Direct Lending and Finance of America Companies’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nuveen Churchill Direct Lending	$161.76 million	5.94	$75.94 million	N/A	N/A
Finance of America Companies	$234.25 million	0.22	-$80.09 million	($1.06)	-0.51

Nuveen Churchill Direct Lending has higher earnings, but lower revenue than Finance of America Companies.

Profitability

This table compares Nuveen Churchill Direct Lending and Finance of America Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nuveen Churchill Direct Lending	46.95%	11.91%	4.89%
Finance of America Companies	N/A	-13.19%	-0.14%

Institutional and Insider Ownership

97.2% of Finance of America Companies shares are owned by institutional investors. 15.6% of Finance of America Companies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Nuveen Churchill Direct Lending beats Finance of America Companies on 6 of the 11 factors compared between the two stocks.

About Nuveen Churchill Direct Lending

Nuveen Churchill Direct Lending Corp. is a specialty finance company focused primarily on investing in senior secured loans to private equity-owned U.S. middle market companies. It has elected to be regulated as a business development company. Nuveen Churchill Direct Lending Corp. is based in NEW YORK.

About Finance of America Companies

Finance of America Companies Inc. a financial service holding company, through its subsidiaries, engages in the operation of a retirement solutions platform in the United States. It operates through two segments: Retirement Solutions and Portfolio Management. The Retirement Solutions segment engages in the loan origination activities comprising home equity conversion, proprietary reverse, and hybrid mortgage loans for senior homeowners. The Portfolio Management segment provides product development, loan securitization, loan sales, risk management, servicing oversight, and asset management services for borrowers and investors. The company was founded in 2013 and is headquartered in Plano, Texas.