MidCap Financial Investment (NASDAQ:MFIC – Get Free Report) and Resolute Holdings Management (NYSE:RHLD – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Insider and Institutional Ownership
28.5% of MidCap Financial Investment shares are held by institutional investors. 0.8% of MidCap Financial Investment shares are held by company insiders. Comparatively, 50.8% of Resolute Holdings Management shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares MidCap Financial Investment and Resolute Holdings Management’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MidCap Financial Investment | 30.60% | 10.44% | 4.41% |
| Resolute Holdings Management | 23.82% | -646.55% | 9.94% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MidCap Financial Investment | 0 | 4 | 3 | 0 | 2.43 |
| Resolute Holdings Management | 1 | 0 | 0 | 0 | 1.00 |
MidCap Financial Investment currently has a consensus price target of $13.42, indicating a potential upside of 10.70%. Given MidCap Financial Investment’s stronger consensus rating and higher probable upside, analysts clearly believe MidCap Financial Investment is more favorable than Resolute Holdings Management.
Valuation & Earnings
This table compares MidCap Financial Investment and Resolute Holdings Management”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MidCap Financial Investment | $301.78 million | 3.75 | $98.82 million | $1.08 | 11.22 |
| Resolute Holdings Management | $344.35 million | 4.20 | $110.26 million | ($0.46) | -369.14 |
Resolute Holdings Management has higher revenue and earnings than MidCap Financial Investment. Resolute Holdings Management is trading at a lower price-to-earnings ratio than MidCap Financial Investment, indicating that it is currently the more affordable of the two stocks.
Summary
MidCap Financial Investment beats Resolute Holdings Management on 8 of the 13 factors compared between the two stocks.
About MidCap Financial Investment
MidCap Financial Investment Corporation (Former name 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 and EBITDA with less than $75 million. The fund seeks to make investments with stated maturities of five to 10 years.
About Resolute Holdings Management
Resolute Holdings Management, Inc. operates as an alternative asset management platform company. The company was incorporated in 2024 and is based in New York, New York.
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