Super Hi International (NASDAQ:HDL) and Main Street Capital (NYSE:MAIN) Critical Analysis

Main Street Capital (NYSE:MAIN) and Super Hi International (NASDAQ:HDL) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Earnings and Valuation

This table compares Main Street Capital and Super Hi International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Main Street Capital	$601.25 million	7.79	$428.45 million	$5.84	9.05
Super Hi International	$778.31 million	1.86	$25.26 million	$0.30	74.10

Main Street Capital has higher earnings, but lower revenue than Super Hi International. Main Street Capital is trading at a lower price-to-earnings ratio than Super Hi International, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

20.3% of Main Street Capital shares are held by institutional investors. 4.0% of Main Street Capital shares are held 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.

Profitability

This table compares Main Street Capital and Super Hi International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Main Street Capital	89.25%	13.83%	7.37%
Super Hi International	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations and price targets for Main Street Capital and Super Hi International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Main Street Capital	0	4	1	0	2.20
Super Hi International	0	0	0	0	0.00

Main Street Capital currently has a consensus target price of $52.60, suggesting a potential downside of 0.51%. Given Main Street Capital’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Main Street Capital is more favorable than Super Hi International.

Summary

Main Street Capital beats Super Hi International on 11 of the 13 factors compared between the two stocks.

About Main Street Capital

Main Street Capital Corporation is a business development company specializes in equity capital to lower middle market companies. The firm specializing in recapitalizations, management buyouts, refinancing, family estate planning, management buyouts, refinancing, industry consolidation, mature, later stage emerging growth. The firm also provides debt capital to middle market companies for acquisitions, management buyouts, growth financings, recapitalizations, and refinancing. The firm seeks to partner with entrepreneurs, business owners and management teams and generally provides “one stop” financing alternatives within its lower middle market portfolio. It prefers to invest in air freight and logistics, auto components, building products, chemicals, commercial services, computers, construction and engineering, consumer finance, consumer services, electronic equipment, energy equipment and services, financial services, health care equipment, health care providers, hotels, restaurants, and leisure, internet software and services, IT Services, machinery, oil, gas and consumable fuels, paper and forest products, professional and industrial services, road and rail, software, specialty retail, telecommunication, consumer discretionary, energy, materials, technology, and transportation. The firm typically invests in lower middle market companies generally with annual revenues between $10 million and $150 million. It prefers to invest in ranging between $5 million and $100 million in equity investment and enterprise value in ranging between $3 million and $20 million. The firm typically prefers to invest in the range of $5 million and $150 million per transaction in debt investment value and in the range of $3 million and $75 million in annual EBITDA in between $3 million and $25 million in lower middle market $5 million and $75 million in credit solution. The firm’s middle market debt investments are made in businesses that are generally larger in size than its lower middle market portfolio companies. It takes 5 percent minority and up to 50 percent majority equity investments. Main Street Capital Corporation was founded in 2007 and is based in Houston, Texas with an additional office in Chojnów, Poland.

About Super Hi International

Super Hi International Holding Ltd., an investment holding company, operates Haidilao branded Chinese cuisine restaurants in Asia, North America, and internationally. The company is involved in the food delivery business. It also engages in sale of hot pot condiment products and food ingredients. The company was incorporated in 2022 and is based in Singapore.