Monroe Capital (NASDAQ:MRCC) and Puhui Wealth Investment Managemnt (NASDAQ:PHCF) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.
This table compares Monroe Capital and Puhui Wealth Investment Managemnt’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Puhui Wealth Investment Managemnt||N/A||N/A||N/A|
Monroe Capital pays an annual dividend of $1.40 per share and has a dividend yield of 13.6%. Puhui Wealth Investment Managemnt does not pay a dividend. Monroe Capital pays out 89.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of recent ratings for Monroe Capital and Puhui Wealth Investment Managemnt, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Puhui Wealth Investment Managemnt||0||0||0||0||N/A|
Monroe Capital presently has a consensus price target of $12.83, suggesting a potential upside of 24.35%. Given Monroe Capital’s higher probable upside, equities analysts clearly believe Monroe Capital is more favorable than Puhui Wealth Investment Managemnt.
Valuation and Earnings
This table compares Monroe Capital and Puhui Wealth Investment Managemnt’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Monroe Capital||$58.38 million||3.61||$5.85 million||$1.57||6.57|
|Puhui Wealth Investment Managemnt||$4.13 million||7.24||$470,000.00||N/A||N/A|
Monroe Capital has higher revenue and earnings than Puhui Wealth Investment Managemnt.
Institutional & Insider Ownership
21.6% of Monroe Capital shares are held by institutional investors. Comparatively, 0.2% of Puhui Wealth Investment Managemnt shares are held by institutional investors. 2.3% of Monroe Capital shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Monroe Capital beats Puhui Wealth Investment Managemnt on 10 of the 12 factors compared between the two stocks.
Monroe Capital Company Profile
Monroe Capital Corporation is a business development company specializing in senior, unitranche and junior secured debt and to a lesser extent, unsecured debt and equity investments, and buyouts in middle-market companies. The fund prefers to invest in casinos and gaming, broadcasting, publishing, alcoholic beverage and tobacco distribution, oil and gas, insurance, pharmaceuticals and bio sciences, aerospace and defense, commercial printing, natural rubber, glass, container and packaging, metals and mining, and real estate. It focuses to invest in the United States and Canada. The fund focuses on companies with a maximum of $25 million in EBITDA per year.
Puhui Wealth Investment Managemnt Company Profile
Puhui Wealth Investment Management Co., Ltd., through its subsidiaries, provides third-party wealth management services in the People’s Republic of China. It manages funds for individuals and corporate clients. Puhui Wealth Investment Management Co., Ltd. has a strategic cooperation agreement with YINGKE Innovation Asset Management Co., Ltd. to jointly establish an equity investment fund. The company was founded in 2013 and is headquartered in Beijing, China.
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