Monroe Capital (NASDAQ:MRCC – Get Rating) and Hywin (NASDAQ:HYW – Get Rating) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.
Insider & Institutional Ownership
19.1% of Monroe Capital shares are owned by institutional investors. 3.5% of Monroe Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Monroe Capital and Hywin’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Monroe Capital||$53.83 million||3.96||$32.46 million||$1.23||8.01|
|Hywin||$277.11 million||0.67||$31.37 million||N/A||N/A|
Monroe Capital has higher earnings, but lower revenue than Hywin.
This table compares Monroe Capital and Hywin’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Monroe Capital has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Hywin has a beta of -0.16, suggesting that its stock price is 116% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Monroe Capital and Hywin, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Monroe Capital presently has a consensus price target of $10.50, suggesting a potential upside of 6.60%. Given Monroe Capital’s higher probable upside, equities analysts clearly believe Monroe Capital is more favorable than Hywin.
Monroe Capital beats Hywin on 10 of the 11 factors compared between the two stocks.
Monroe Capital Company Profile (Get Rating)
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.
Hywin Company Profile (Get Rating)
Hywin Holdings Ltd., through its subsidiaries, provides wealth management, insurance brokerage, and asset management service in China. It distributes private market investment products comprising asset-backed products, such as real estate securitization products, and equity investments in real estate projects or private project companies; venture capital, private equity, and hedge funds; and supply chain financing products, cash management products, and funds managed by its subsidiaries. The company also offers public market investment products, including money market funds, such as government bonds, central bank bills, term deposits, certificates of deposits, and corporate commercial papers; government bonds, corporate bonds, convertible bonds, and other traded debt instruments; and equities and multi-strategy funds. In addition, it provides individual whole life insurance, individual term life insurance, universal life insurance, individual health insurance, and annuity insurance products, as well as critical illness insurance comprising personal accident insurance products; discretionary and advisory mandates to ultra-high-net-worth clients; and overseas property investment services for residential properties, as well as client referrals to overseas property developers. Further, the company manages and distributes a range of private funds to professional investors; and offers information technology services, including transaction process management, data analysis, and system maintenance services to asset management service and financial product providers. The company was founded in 2006 and is headquartered in Shanghai, China. Hywin Holdings Ltd. is a subsidiary of Grand Lead Group Limited.
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