MidCap Financial Investment (NASDAQ:MFIC – Get Rating) and Morgan Stanley India Investment Fund (NYSE:IIF – Get Rating) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.
Valuation & Earnings
This table compares MidCap Financial Investment and Morgan Stanley India Investment Fund's gross revenue, earnings per share (EPS) and valuation.
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| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
MidCap Financial Investment | $213.15 million | 3.80 | $82.36 million | $0.73 | 16.97 |
Morgan Stanley India Investment Fund | N/A | N/A | N/A | N/A | N/A |
MidCap Financial Investment has higher revenue and earnings than Morgan Stanley India Investment Fund.
Volatility & Risk
MidCap Financial Investment has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500. Comparatively, Morgan Stanley India Investment Fund has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.
Institutional and Insider Ownership
29.3% of MidCap Financial Investment shares are held by institutional investors. Comparatively, 44.8% of Morgan Stanley India Investment Fund shares are held by institutional investors. 0.9% of MidCap Financial Investment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares MidCap Financial Investment and Morgan Stanley India Investment Fund's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
MidCap Financial Investment | 20.92% | 9.54% | 3.67% |
Morgan Stanley India Investment Fund | N/A | N/A | N/A |
Analyst Recommendations
This is a summary of current ratings and recommmendations for MidCap Financial Investment and Morgan Stanley India Investment Fund, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
MidCap Financial Investment | 0 | 2 | 1 | 0 | 2.33 |
Morgan Stanley India Investment Fund | 0 | 0 | 0 | 0 | N/A |
MidCap Financial Investment currently has a consensus target price of $12.17, indicating a potential downside of 1.80%. Given MidCap Financial Investment's higher possible upside, equities analysts clearly believe MidCap Financial Investment is more favorable than Morgan Stanley India Investment Fund.
Dividends
MidCap Financial Investment pays an annual dividend of $1.48 per share and has a dividend yield of 11.9%. Morgan Stanley India Investment Fund pays an annual dividend of $3.98 per share and has a dividend yield of 19.7%. MidCap Financial Investment pays out 202.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MidCap Financial Investment has raised its dividend for 1 consecutive years and Morgan Stanley India Investment Fund has raised its dividend for 1 consecutive years.
Summary
MidCap Financial Investment beats Morgan Stanley India Investment Fund on 8 of the 11 factors compared between the two stocks.
About MidCap Financial Investment
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Apollo Investment Corporation (NASDAQ: AINV) , a Maryland corporation organized on February 2, 2004, is a closed-end, externally managed, non-diversified management investment company that has elected to be treated as a business development company ("BDC") under the Investment Company Act of 1940 (the "1940 Act"). In addition, for tax purposes we have elected to be treated as a regulated investment company ("RIC") under the Internal Revenue Code of 1986, as amended ("the Code"). Our investment objective is to generate current income and capital appreciation. We invest in various forms of debt investments including senior secured loans, subordinated and mezzanine investments and/or equity in private middle-market companies. From time to time, we may also invest in the securities of public companies. Our portfolio is comprised primarily of investments in subordinated debt, sometimes referred to as mezzanine debt, and senior secured loans of private middle-market companies that, in the case of senior secured loans, generally are not broadly syndicated and whose aggregate tranche size is typically less than $300 million. From time to time, our portfolio also includes equi
About Morgan Stanley India Investment Fund
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Morgan Stanley India Investment Fund, Inc. is a closed ended equity mutual fund launched and managed by Morgan Stanley Investment Management Inc. The fund is co-managed by Morgan Stanley Investment Management Company. It invests in the public equity markets of India. The fund invests in stocks of companies operating across diversified sectors. It benchmarks the performance of its portfolio against the U.S. dollar adjusted BSE National Index. Morgan Stanley India Investment Fund, Inc. was formed on December 22, 1993 and is domiciled in the United States.
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