MidCap Financial Investment (NASDAQ:MFIC – Get Free Report) and Barings Corporate Investors (NYSE:MCI – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.
Valuation & Earnings
This table compares MidCap Financial Investment and Barings Corporate Investors”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
MidCap Financial Investment | $110.35 million | 9.40 | $118.76 million | $1.31 | 8.44 |
Barings Corporate Investors | $37.92 million | 10.86 | N/A | N/A | N/A |
MidCap Financial Investment has higher revenue and earnings than Barings Corporate Investors.
Dividends
Profitability
This table compares MidCap Financial Investment and Barings Corporate Investors’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
MidCap Financial Investment | 37.05% | 11.37% | 4.70% |
Barings Corporate Investors | N/A | N/A | N/A |
Risk & Volatility
MidCap Financial Investment has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Barings Corporate Investors has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for MidCap Financial Investment and Barings Corporate Investors, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
MidCap Financial Investment | 0 | 2 | 3 | 0 | 2.60 |
Barings Corporate Investors | 0 | 0 | 0 | 0 | 0.00 |
MidCap Financial Investment presently has a consensus price target of $14.50, indicating a potential upside of 31.10%. Given MidCap Financial Investment’s stronger consensus rating and higher probable upside, equities analysts plainly believe MidCap Financial Investment is more favorable than Barings Corporate Investors.
Insider & Institutional Ownership
28.5% of MidCap Financial Investment shares are owned by institutional investors. 1.1% of MidCap Financial Investment shares are owned by insiders. Comparatively, 1.1% of Barings Corporate Investors shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
MidCap Financial Investment beats Barings Corporate Investors on 11 of the 13 factors compared between the two stocks.
About MidCap Financial Investment
MidCap Financial Investment Corporation (Former name Apollo Investment Corporation) is business development company and a closed-end, externally managed, non-diversified management investment company. It is elected to be treated as a business development company (BDC) under the Investment Company Act of 1940 (the 1940 Act) specializing in private equity investments in leveraged buyouts, acquisitions, recapitalizations, growth capital, refinancing and private middle market companies. It provides direct equity capital, mezzanine, first lien secured loans, stretch senior loans, unitranche loans, second lien secured loans and senior secured loans, unsecured debt, and subordinated debt and loans. It also seeks to invest in PIPES transactions. The fund may also invest in securities of public companies that are thinly traded and may acquire investments in the secondary market and structured products. It prefers to invest in preferred equity, common equity / interests and warrants and makes equity co-investments. It may invest in cash equivalents, U.S. government securities, high-quality debt investments that mature in one year or less, high-yield bonds, distressed debt, non-U.S. investments, or securities of public companies that are not thinly traded. It also focuses on other investments such as collateralized loan obligations (CLOs) and credit-linked notes (CLNs). The fund typically invests in construction and building materials, business services, plastics & rubber, advertising, capital equipment, education, cable television, chemicals, consumer products/goods durable and non-durable and customer services, direct marketing, energy oil & gas, electricity and utilities. The fund also invest in aerospace & defense, wholesale, telecommunications, financial services, hotel, gaming, leisure, restaurants; environmental industries, healthcare and pharmaceuticals, high tech industries, beverages, food and tobacco, manufacturing, media diversified & production, printing and publishing, retail, automation, aviation and consumer transport, transportation, cargo and distribution. It primarily invests in United States. It primarily invests between $20 million and $250 million in its portfolio companies and EBITDA with less than $75 million. The fund seeks to make investments with stated maturities of five to 10 years.
About Barings Corporate Investors
Babson Capital Corporate Investors trust is a closed ended fixed income mutual fund launched and managed by Barings LLC. It invests in fixed income markets of the United States. The fund seeks to invest in securities of companies operating across diversified sectors. It primarily invests in a portfolio of privately placed, below-investment grade, long term corporate debt obligations. The fund also invests in marketable investment grade debt securities, other marketable debt securities, and marketable common stocks. It was formerly known as Babson Capital Corporate Investors. Babson Capital Corporate Investors trust was formed in 1971 and is domiciled in the United States.
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