Monroe Capital (NASDAQ:MRCC) and Wright Investors Service (OTCMKTS:WISH) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
This table compares Monroe Capital and Wright Investors Service’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wright Investors Service||N/A||-25.90%||-25.25%|
Monroe Capital has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Wright Investors Service has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.
Institutional & Insider Ownership
22.4% of Monroe Capital shares are held by institutional investors. Comparatively, 4.5% of Wright Investors Service shares are held by institutional investors. 2.3% of Monroe Capital shares are held by insiders. Comparatively, 30.5% of Wright Investors Service shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Monroe Capital pays an annual dividend of $1.40 per share and has a dividend yield of 13.5%. Wright Investors Service does not pay a dividend. Monroe Capital pays out 89.2% 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 Monroe Capital and Wright Investors Service’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Monroe Capital||$58.38 million||3.63||$5.85 million||$1.57||6.61|
|Wright Investors Service||$5.41 million||1.63||-$1.72 million||N/A||N/A|
Monroe Capital has higher revenue and earnings than Wright Investors Service.
This is a breakdown of recent recommendations for Monroe Capital and Wright Investors Service, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wright Investors Service||0||0||0||0||N/A|
Monroe Capital presently has a consensus target price of $12.67, indicating a potential upside of 22.15%. Given Monroe Capital’s higher probable upside, equities research analysts clearly believe Monroe Capital is more favorable than Wright Investors Service.
Monroe Capital beats Wright Investors Service on 11 of the 13 factors compared between the two stocks.
About Monroe Capital
Monroe Capital Corporation is a business development company specializing in senior, unitranche and junior secured debt and to a lesser extent, unsecured debt and equity investments, and buyouts in middle-market companies. The fund prefers to invest in casinos and gaming, broadcasting, publishing, alcoholic beverage and tobacco distribution, oil and gas, insurance, pharmaceuticals and bio sciences, aerospace and defense, commercial printing, natural rubber, glass, container and packaging, metals and mining, and real estate. It focuses to invest in the United States and Canada. The fund focuses on companies with a maximum of $25 million in EBITDA per year.
About Wright Investors Service
Wright Investors' Service Holdings, Inc., through its wholly-owned subsidiary, The Winthrop Corporation, provides investment management, financial advisory, and investment research services to large and small investors in the United States. The company offers investment management products and services, including equity, fixed income, and balanced portfolios for various plan types, such as defined benefit, annuity, self-directed and 401(k), health and welfare, and education and training plans to sponsors, trade unions, endowments, corporations, state and local governments, municipalities, and foundations. It also manages various accounts, such as discretionary investment accounts, individual retirement accounts, and 401k plans, as well as accounts for non-corporate fiduciaries comprising trustees, executors, guardians, personal representatives, attorneys, and other professionals to support high net worth investors and other individual investors; and provides a family of mutual funds. In addition, the company offers research products for institutional investors that include Wright Reports, a research report providing approximately 10 years of fundamental information for approximately 35,000 companies in 63 countries; and One-Page Report, a company specific single page report with approximately 10 years of history that contains valuation ratios, earnings, and dividends. Its research products also comprise Wright Industry Averages Reports, which are consolidated reports prepared on a Global and Regional basis for various industries; corporateInformation.com, an online commercial Website that offers subscription access to the universe of Wright Reports; Wright Fiduciary Lists; and Wright FIRST Investment Research Service, a financial management service to portfolio, trust, and investment professionals. The company is headquartered in Greenwich, Connecticut.
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