Patria Investments (NYSE:PAX) versus MSC Income Fund (NYSE:MSIF) Critical Comparison

MSC Income Fund (NYSE:MSIF) and Patria Investments (NYSE:PAX) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Institutional & Insider Ownership

96.3% of Patria Investments shares are owned by institutional investors. 0.5% of MSC Income Fund shares are owned by insiders. Comparatively, 58.1% of Patria Investments shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for MSC Income Fund and Patria Investments, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MSC Income Fund	0	3	3	1	2.71
Patria Investments	3	1	1	0	1.60

MSC Income Fund currently has a consensus target price of $14.10, suggesting a potential upside of 18.44%. Patria Investments has a consensus target price of $12.75, suggesting a potential upside of 35.49%. Given Patria Investments’ higher possible upside, analysts plainly believe Patria Investments is more favorable than MSC Income Fund.

Valuation & Earnings

This table compares MSC Income Fund and Patria Investments”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MSC Income Fund	$110.26 million	5.09	$100.90 million	$2.14	5.56
Patria Investments	$428.00 million	1.46	$73.40 million	$0.44	21.39

MSC Income Fund has higher earnings, but lower revenue than Patria Investments. MSC Income Fund is trading at a lower price-to-earnings ratio than Patria Investments, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares MSC Income Fund and Patria Investments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MSC Income Fund	N/A	N/A	N/A
Patria Investments	19.91%	38.68%	15.84%

Summary

Patria Investments beats MSC Income Fund on 8 of the 14 factors compared between the two stocks.

About Patria Investments

Patria Investments Limited operates as a private market investment firm focused on investing in Latin America. The company offers asset management services to investors focusing on private equity funds, infrastructure development funds, co-investments funds, constructivist equity funds, and real estate and credit funds. Patria Investments Limited was founded in 1994 and is headquartered in Grand Cayman, the Cayman Islands.