Head-To-Head Analysis: Noranda Income Fund (OTCMKTS:NNDIF) & MSC Income Fund (NYSE:MSIF)

MSC Income Fund (NYSE:MSIF) and Noranda Income Fund (OTCMKTS:NNDIF) are both financial services companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Profitability

This table compares MSC Income Fund and Noranda Income Fund’s 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
Noranda Income Fund	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations for MSC Income Fund and Noranda Income Fund, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MSC Income Fund	0	3	2	1	2.67
Noranda Income Fund	0	0	0	0	0.00

MSC Income Fund currently has a consensus target price of $13.88, indicating a potential upside of 27.25%. Given MSC Income Fund’s stronger consensus rating and higher probable upside, research analysts clearly believe MSC Income Fund is more favorable than Noranda Income Fund.

Valuation and Earnings

This table compares MSC Income Fund and Noranda Income Fund”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MSC Income Fund	$96.38 million	5.33	-$155,544.55	($0.00)	-3,305.24
Noranda Income Fund	N/A	N/A	N/A	$0.17	8.57

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

Institutional & Insider Ownership

19.9% of Noranda Income Fund shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

MSC Income Fund beats Noranda Income Fund on 5 of the 8 factors compared between the two stocks.

About Noranda Income Fund

Noranda Income Fund (”Fund”) is an income trust whose units trade on the TSX under the symbol ”NIF.UN”. The Fund owns the electrolytic zinc processing facility and ancillary assets(”the Processing Facility”) located in Salaberry-de-Valleyfield, Québec. The Processing Facility is the second-largest zinc processing facility in North America and the largest zinc processing facility in eastern North America , where the majority of zinc customers are located. Zinc concentrate is supplied to the Processing Facility by Glencore Canada Corporation (”Glencore Canada”) under an agreement that will last until 2017. The Fund is paid a processing fee for refining the zinc, and it earns additional revenue through zinc metal premiums, by-product credits and metal recovery gains. The Fund’s primary objective is to provide stable, monthly distributions.