Critical analysis: MidCap Financial Investment (MFIC) and its rivals
MidCap Financial Investment (NASDAQ: MFIC – Get a rating) is one of 199 public companies in the “Investment Offices, Not Elsewhere Classified” sector, but how does it compare to its peers? We will compare MidCap Financial Investment to similar companies based on the strength of its risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.
This is a breakdown of recent ratings and target prices for MidCap Financial Investment and its peers, as reported by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|MidCap Financial Investment||0||0||0||0||N / A|
|MidCap Financial Investment Competitors||108||538||634||4||2.42|
As a group, “Investment Offices, Not Elsewhere Classified” companies have an upside potential of 17.71%. Since MidCap Financial Investment peers have higher upside potential, analysts clearly believe that MidCap Financial Investment has less favorable growth aspects than its peers.
Insider and Institutional Ownership
28.6% of MidCap Financial Investment shares are held by institutional investors. By comparison, 23.0% of the shares of all “Investment Offices, Not Elsewhere Classified” companies are held by institutional investors. 0.9% of shares of MidCap Financial Investment are held by insiders of the company. By comparison, 6.5% of the shares of all “Investment Offices, Not Elsewhere Classified” companies are held by insiders. Strong institutional ownership indicates that large money managers, endowments, and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
MidCap Financial Investment has a beta of 1.57, suggesting its stock price is 57% more volatile than the S&P 500. In comparison, MidCap Financial Investment’s peers have a beta of 0.66, suggesting that their average price is 34% less volatile than the S&P. 500.
This table compares the net margins, return on equity and return on assets of MidCap Financial Investment and its peers.
|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%|
MidCap Financial Investment pays an annual dividend of $1.24 per share and has a dividend yield of 9.8%. 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. As a group, the “Investment Offices, Not Elsewhere Classified” companies pay a dividend yield of 11.5% and pay out 333.3% of their profits as a dividend.
Benefits and evaluation
This table compares the gross revenue, earnings per share and market valuation of MidCap Financial Investment and its peers.
|Gross revenue||Net revenue||Price/earnings ratio|
|MidCap Financial Investment||$213.15 million||$82.36 million||14.53|
|MidCap Financial Investment Competitors||$98.85 million||$64.84 million||9:42 p.m.|
MidCap Financial Investment has higher revenue and profit than its peers. MidCap Financial Investment trades at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
MidCap Financial Investment beats its peers on 8 of the 12 factors compared.
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, senior extended 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.
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