Contrasting MidCap Financial Investment (NASDAQ:MFIC) & Vinci Compass Investments (NASDAQ:VINP)

MidCap Financial Investment (NASDAQ:MFIC) and Vinci Compass Investments (NASDAQ:VINP) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Volatility and Risk

MidCap Financial Investment has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Vinci Compass Investments has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500.

Profitability

This table compares MidCap Financial Investment and Vinci Compass Investments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MidCap Financial Investment	1.90%	10.86%	4.31%
Vinci Compass Investments	26.75%	13.73%	7.32%

Dividends

MidCap Financial Investment pays an annual dividend of $1.24 per share and has a dividend yield of 11.6%. Vinci Compass Investments pays an annual dividend of $0.68 per share and has a dividend yield of 6.6%. MidCap Financial Investment pays out 3,100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vinci Compass Investments pays out 91.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of recent recommendations for MidCap Financial Investment and Vinci Compass Investments, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MidCap Financial Investment	0	7	2	0	2.22
Vinci Compass Investments	0	2	2	0	2.50

MidCap Financial Investment presently has a consensus target price of $11.54, suggesting a potential upside of 8.32%. Vinci Compass Investments has a consensus target price of $14.00, suggesting a potential upside of 35.53%. Given Vinci Compass Investments’ stronger consensus rating and higher probable upside, analysts plainly believe Vinci Compass Investments is more favorable than MidCap Financial Investment.

Institutional & Insider Ownership

28.5% of MidCap Financial Investment shares are held by institutional investors. Comparatively, 34.1% of Vinci Compass Investments shares are held by institutional investors. 0.8% of MidCap Financial Investment shares are held by company insiders. Comparatively, 49.3% of Vinci Compass Investments shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares MidCap Financial Investment and Vinci Compass Investments”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MidCap Financial Investment	$320.88 million	2.73	$63.17 million	$0.04	266.25
Vinci Compass Investments	$175.01 million	3.86	$38.97 million	$0.74	13.96

MidCap Financial Investment has higher revenue and earnings than Vinci Compass Investments. Vinci Compass Investments 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

Vinci Compass Investments beats MidCap Financial Investment on 10 of the 15 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 Vinci Compass Investments

Vinci Partners Investments Ltd. operates as an asset management firm in Brazil. The company focuses on private markets, liquid strategies, investment products and solutions, and retirement services. It offers private equity, infrastructure, real estate, credit, special situations, equities, hedge funds, and investment products and solutions comprising portfolio and management services. In addition, the company financial and strategic advisory services, focusing on IPO advisory and mergers and acquisition transactions to entrepreneurs, corporate senior management teams, and boards of directors. Vinci Partners Investments Ltd. was founded in 2009 and is based in Rio de Janeiro, Brazil.