Comparison of MidCap Financial Investment (NASDAQ:MFIC) and MFS Municipal Income Trust (NYSE:MFM)
MidCap Financial Investment (NASDAQ: MFIC – Get a rating) and MFS Municipal Income Trust (New York Stock Exchange: MFM – Get a rating) are both small cap finance companies, but which is the better stock? We’ll compare the two companies based on their risk strength, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
This table compares the net margins, return on equity and return on assets of MidCap Financial Investment and MFS Municipal Income Trust.
|Net margins||Return on equity||return on assets|
|MidCap Financial Investment||25.87%||9.28%||3.55%|
|MFS Municipal Income Trust||N / A||N / A||N / A|
Valuation and benefits
This table compares the revenue, earnings per share (EPS), and valuation of MidCap Financial Investment and MFS Municipal Income Trust.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|MidCap Financial Investment||$213.15 million||3.94||$82.36 million||$0.87||15.21|
|MFS Municipal Income Trust||N / A||N / A||N / A||N / A||N / A|
MidCap Financial Investment has higher income and profit than MFS Municipal Income Trust.
Institutional and insider ownership
30.8% of the shares of MidCap Financial Investment are held by institutional investors. By comparison, 25.5% of the shares of MFS Municipal Income Trust are held by institutional investors. 0.9% of shares of MidCap Financial Investment are held by insiders. By comparison, 0.8% of the shares of MFS Municipal Income Trust are held by insiders. Strong institutional ownership indicates that large fund managers, endowments, and hedge funds believe a company will outperform the market over the long term.
Volatility and risk
MidCap Financial Investment has a beta of 1.65, suggesting its stock price is 65% more volatile than the S&P 500. In comparison, MFS Municipal Income Trust has a beta of 0.36, suggesting its stock price of its stock is 64% 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 9.4%. MFS Municipal Income Trust pays an annual dividend of $0.27 per share and has a dividend yield of 4.8%. MidCap Financial Investment pays out 142.5% of its earnings as a dividend, suggesting that it may not have enough earnings to cover its dividend payment in the future.
This is a breakdown of the current ratings and target prices for MidCap Financial Investment and MFS Municipal Income Trust, as provided by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|MidCap Financial Investment||0||0||0||0||N / A|
|MFS Municipal Income Trust||0||0||0||0||N / A|
MidCap Financial Investment beats MFS Municipal Income Trust on 8 out of 9 factors compared between the two stocks.
About MidCap Financial Investment
Apollo Investment Corporation is a non-diversified, externally managed closed-end business development and investment company. It is elected to be treated as a business development company (BDC) under the Investment Companies Act 1940 (the 1940 Act) specializing in private equity investments in leveraged buyouts, acquisitions , recapitalizations, growth capital, refinancing and middle market private companies. It provides direct equity, mezzanine loans, senior secured loans, extended 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 thinly traded public company securities and may acquire secondary market investments and structured products. He prefers to invest in preferred stocks, common stocks/interests and warrants and makes equity co-investments. It may invest in cash equivalents, U.S. government securities, high quality debt securities that mature in one year or less, high yield bonds, distressed debt securities, non-U.S. investments or thinly traded public company securities. It also focuses on other investments such as secured loan obligations (CLOs) and credit-linked notes (CLNs). The fund generally invests in construction and building materials, business services, plastics and rubber, advertising, capital goods, education, cable television, chemicals, commodities/goods durable and non-durable consumer goods and customer services, direct marketing, energy – oil and gas, electricity and utilities. The fund also invests in aerospace and defense, wholesale, telecommunications, financial services, hospitality, gaming, leisure, restaurants; environmental industries, healthcare and pharmaceuticals, high-tech industries, beverages, food and tobacco, manufacturing, media – diversified and production, printing and publishing, retail, automation, aviation and consumer transportation, transportation, freight and distribution . It invests mainly in the 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.
About MFS Municipal Income Trust
MFS Municipal Income Trust is a closed-end, fixed-income mutual fund launched and managed by Massachusetts Financial Services Company. The fund invests in US bond markets. It invests primarily in tax-exempt bonds and tax-exempt notes. The fund compares the performance of its portfolio to the Barclays Municipal Bond Index. MFS Municipal Income Trust was founded on November 25, 1986 and is domiciled in the United States.
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