MidCap Financial Investment (NASDAQ:MFIC – Get Rating) is one of 199 public companies in the “Investment offices, not elsewhere classified” industry, but how does it compare to its rivals? We will compare MidCap Financial Investment to similar businesses based on the strength of its valuation, profitability, institutional ownership, dividends, earnings, analyst recommendations and risk.
Valuation and Earnings
This table compares MidCap Financial Investment and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|MidCap Financial Investment||$213.15 million||$82.36 million||14.95|
|MidCap Financial Investment Competitors||$98.85 million||$64.84 million||21.46|
MidCap Financial Investment has higher revenue and earnings than its rivals. MidCap Financial Investment is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MidCap Financial Investment||0||0||0||0||N/A|
|MidCap Financial Investment Competitors||108||537||634||4||2.42|
As a group, “Investment offices, not elsewhere classified” companies have a potential upside of 17.00%. Given MidCap Financial Investment’s rivals higher possible upside, analysts plainly believe MidCap Financial Investment has less favorable growth aspects than its rivals.
This table compares MidCap Financial Investment and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MidCap Financial Investment||25.87%||9.28%||3.55%|
|MidCap Financial Investment Competitors||-161.70%||7.16%||3.18%|
Insider & Institutional Ownership
28.6% of MidCap Financial Investment shares are held by institutional investors. Comparatively, 23.0% of shares of all “Investment offices, not elsewhere classified” companies are held by institutional investors. 0.9% of MidCap Financial Investment shares are held by company insiders. Comparatively, 6.5% of shares of all “Investment offices, not elsewhere classified” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
MidCap Financial Investment has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500. Comparatively, MidCap Financial Investment’s rivals have a beta of 0.66, suggesting that their average share price is 34% less volatile than the S&P 500.
MidCap Financial Investment pays an annual dividend of $1.24 per share and has a dividend yield of 9.5%. MidCap Financial Investment pays out 142.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Investment offices, not elsewhere classified” companies pay a dividend yield of 11.3% and pay out 333.3% of their earnings in the form of a dividend.
MidCap Financial Investment beats its rivals on 8 of the 12 factors compared.
MidCap Financial Investment Company Profile
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. The fund seeks to make investments with stated maturities of five to 10 years.
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