MidCap Financial Investment (NASDAQ:MFIC – Get Free Report) and Donnelley Financial Solutions (NYSE:DFIN – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.
Institutional and Insider Ownership
28.4% of MidCap Financial Investment shares are owned by institutional investors. Comparatively, 93.8% of Donnelley Financial Solutions shares are owned by institutional investors. 0.9% of MidCap Financial Investment shares are owned by insiders. Comparatively, 5.2% of Donnelley Financial Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares MidCap Financial Investment and Donnelley Financial Solutions”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MidCap Financial Investment | $320.88 million | 2.64 | $63.17 million | ($0.85) | -12.11 |
| Donnelley Financial Solutions | $787.20 million | 2.13 | $32.40 million | $3.79 | 18.13 |
MidCap Financial Investment has higher earnings, but lower revenue than Donnelley Financial Solutions. MidCap Financial Investment is trading at a lower price-to-earnings ratio than Donnelley Financial Solutions, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for MidCap Financial Investment and Donnelley Financial Solutions, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MidCap Financial Investment | 1 | 7 | 0 | 0 | 1.88 |
| Donnelley Financial Solutions | 0 | 2 | 2 | 1 | 2.80 |
MidCap Financial Investment currently has a consensus price target of $10.25, suggesting a potential downside of 0.39%. Donnelley Financial Solutions has a consensus price target of $74.00, suggesting a potential upside of 7.69%. Given Donnelley Financial Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Donnelley Financial Solutions is more favorable than MidCap Financial Investment.
Profitability
This table compares MidCap Financial Investment and Donnelley Financial Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MidCap Financial Investment | -26.23% | 11.25% | 4.39% |
| Donnelley Financial Solutions | 12.37% | 26.70% | 12.70% |
Volatility and Risk
MidCap Financial Investment has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Donnelley Financial Solutions has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.
Summary
Donnelley Financial Solutions beats MidCap Financial Investment on 13 of the 15 factors compared between the two stocks.
About MidCap Financial Investment
MidCap Financial Investment Corporation is a business development company that provides financing to middle-market companies. Its investments are primarily in privately held businesses and may include senior secured loans, unitranche and other subordinated debt, and, to a lesser extent, equity securities. The company focuses mainly on lending to businesses in the United States across a range of industries. Its financing can support acquisitions, refinancings, growth initiatives, and other corporate needs.
About Donnelley Financial Solutions
Donnelley Financial Solutions, Inc. provides software and services that help companies and investment firms meet regulatory, compliance and financial-communication requirements. Its offerings include support for preparing and filing regulatory documents, financial reporting and shareholder communications. The company also provides technology for managing regulatory disclosures and transactions, including virtual data rooms used in mergers, acquisitions and other corporate processes. Its clients include public and private companies, investment managers, funds and professional services firms.
Receive News & Ratings for MidCap Financial Investment Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MidCap Financial Investment and related companies with MarketBeat.com's FREE daily email newsletter.
