Financial Analysis: HA Sustainable Infrastructure Capital (NYSE:HASI) & MCAN Mortgage (OTCMKTS:MAMTF)

MCAN Mortgage (OTCMKTS:MAMTF) and HA Sustainable Infrastructure Capital (NYSE:HASI) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Earnings and Valuation

This table compares MCAN Mortgage and HA Sustainable Infrastructure Capital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MCAN Mortgage	N/A	N/A	N/A	C$1.49	11.35
HA Sustainable Infrastructure Capital	$400.50 million	12.75	$184.55 million	$0.53	75.00

HA Sustainable Infrastructure Capital has higher revenue and earnings than MCAN Mortgage. MCAN Mortgage is trading at a lower price-to-earnings ratio than HA Sustainable Infrastructure Capital, indicating that it is currently the more affordable of the two stocks.

Dividends

MCAN Mortgage pays an annual dividend of C$1.12 per share and has a dividend yield of 6.6%. HA Sustainable Infrastructure Capital pays an annual dividend of $1.70 per share and has a dividend yield of 4.3%. MCAN Mortgage pays out 75.0% of its earnings in the form of a dividend. HA Sustainable Infrastructure Capital pays out 320.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. HA Sustainable Infrastructure Capital has raised its dividend for 2 consecutive years. MCAN Mortgage is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares MCAN Mortgage and HA Sustainable Infrastructure Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MCAN Mortgage	N/A	N/A	N/A
HA Sustainable Infrastructure Capital	18.61%	13.62%	4.28%

Insider and Institutional Ownership

0.1% of MCAN Mortgage shares are held by institutional investors. Comparatively, 96.1% of HA Sustainable Infrastructure Capital shares are held by institutional investors. 2.2% of HA Sustainable Infrastructure Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for MCAN Mortgage and HA Sustainable Infrastructure Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MCAN Mortgage	0	0	0	0	0.00
HA Sustainable Infrastructure Capital	0	2	11	0	2.85

HA Sustainable Infrastructure Capital has a consensus price target of $47.40, suggesting a potential upside of 19.25%. Given HA Sustainable Infrastructure Capital’s stronger consensus rating and higher possible upside, analysts plainly believe HA Sustainable Infrastructure Capital is more favorable than MCAN Mortgage.

Summary

HA Sustainable Infrastructure Capital beats MCAN Mortgage on 11 of the 14 factors compared between the two stocks.

About MCAN Mortgage

MCAN Mortgage Corporation operates as a loan and mortgage investment corporation in Canada. The company engages in the real estate lending and investing activities, including residential mortgage, residential construction, non-residential construction, and commercial loans, as well as portfolio of real estate investments trusts and private investment activities. It also provides term deposits through a network of independent financial agents. The company was formerly known as MCAP Inc. and changed its name to MCAN Mortgage Corporation in September 2006. The company was founded in 1980 and is headquartered in Toronto, Canada.

About HA Sustainable Infrastructure Capital

HA Sustainable Infrastructure Capital, Inc., through its subsidiaries, engages in the investment of energy efficiency, renewable energy, and sustainable infrastructure markets in the United States. The company’s portfolio includes equity investments, commercial and government receivables, real estate, and debt securities. It invests in climate solutions, including Behind-the-Meter, which distributes energy projects that reduce energy usage or cost through heating, ventilation, and air conditioning systems, as well as lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems; Grid-Connected, a renewable energy projects that deploy cleaner energy sources, such as solar, solar-plus-storage, and wind to generate power production; and Fuels, Transport, and Nature, a range of real assets spanning high-emitting economic sectors other than the power grid such as transportation and fuels comprising renewable natural gas plants, transportation fleet enhancements, ecological restoration, and other projects. HA Sustainable Infrastructure Capital, Inc. was founded in 1981 and is headquartered in Annapolis, Maryland.