Monroe Capital (NASDAQ:MRCC) vs. CI Financial (NYSE:CIXXF) Head to Head Survey

CI Financial (NYSE:CIXXF) and Monroe Capital (NASDAQ:MRCC) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for CI Financial and Monroe Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CI Financial	0	1	0	0	2.00
Monroe Capital	0	0	1	0	3.00

Monroe Capital has a consensus price target of $9.00, indicating a potential upside of 6.01%. Given Monroe Capital’s stronger consensus rating and higher probable upside, analysts clearly believe Monroe Capital is more favorable than CI Financial.

Risk and Volatility

CI Financial has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Monroe Capital has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Profitability

This table compares CI Financial and Monroe Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CI Financial	-2.28%	55.43%	5.23%
Monroe Capital	20.97%	12.14%	4.75%

Dividends

CI Financial pays an annual dividend of $0.59 per share and has a dividend yield of 2.6%. Monroe Capital pays an annual dividend of $1.00 per share and has a dividend yield of 11.8%. CI Financial pays out -178.8% of its earnings in the form of a dividend. Monroe Capital pays out 166.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares CI Financial and Monroe Capital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CI Financial	$2.03 billion	1.58	$3.72 million	($0.33)	-67.70
Monroe Capital	$18.11 million	10.16	$370,000.00	$0.60	14.15

CI Financial has higher revenue and earnings than Monroe Capital. CI Financial is trading at a lower price-to-earnings ratio than Monroe Capital, indicating that it is currently the more affordable of the two stocks.

Summary

Monroe Capital beats CI Financial on 8 of the 14 factors compared between the two stocks.

About CI Financial

CI Financial Corp. is a publicly owned asset management holding company. Through its subsidiaries, the firm manages separate client focused equity, fixed income, and alternative investments portfolios. It also manages mutual funds, hedge funds, and fund of funds for its clients through its subsidiaries. The firm was founded in 1965 and is based in Toronto, Canada with additional offices in Vancouver, Canada; Calgary, Canada; and Montreal, Canada.

About Monroe Capital

Monroe Capital Corporation is a business development company specializing in customized financing solutions in senior, unitranche and junior secured debt, subordinated debt financing and to a lesser extent, unsecured debt and equity, including equity co-investments in preferred and common stock and warrants. It also provides financing primarily to leveraged buyouts in lower middle-market companies. It focuses to invest in the United States and Canada. The fund prefers to invest in companies with EBITDA between $3 and $35 million. Its makes minority equity investments.