MidCap Financial Investment (NASDAQ: MFIC – Get a rating) and PIMCO High Income Fund (NYSE: PHK – Get a rating) are both small-cap finance companies, but which business is superior? We’ll compare the two companies based on their risk strength, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.
Insider and Institutional Ownership
30.8% of the shares of MidCap Financial Investment are held by institutional investors. By comparison, 8.6% of the shares of the PIMCO High Income Fund are held by institutional investors. 0.9% of shares of MidCap Financial Investment are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds, and large money managers believe a company is poised for long-term growth.
This table compares the net margins, return on equity and return on assets of MidCap Financial Investment and PIMCO High Income Fund.
|Net margins||Return on equity||return on assets|
|MidCap Financial Investment||25.87%||9.28%||3.55%|
|PIMCO High Income Fund||N / A||N / A||N / A|
This is a summary of the current ratings and recommendations for MidCap Financial Investment and PIMCO High Income Fund, as provided by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|MidCap Financial Investment||0||0||0||0||N / A|
|PIMCO High Income Fund||0||0||0||0||N / A|
Valuation and benefits
This table compares the gross revenue, earnings per share (EPS), and valuation of MidCap Financial Investment and PIMCO High Income Fund.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|MidCap Financial Investment||$213.15 million||3.94||$82.36 million||$0.87||15.21|
|PIMCO High Income Fund||N / A||N / A||N / A||N / A||N / A|
MidCap Financial Investment has higher income and profit than PIMCO High Income Fund.
Volatility and risk
MidCap Financial Investment has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500. In comparison, PIMCO High Income Fund has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. .
MidCap Financial Investment pays an annual dividend of $1.24 per share and has a dividend yield of 9.4%. The PIMCO High Income Fund pays an annual dividend of $0.58 per share and has a dividend yield of 11.0%. MidCap Financial Investment pays out 142.5% of its earnings as a dividend, suggesting that it may not have enough earnings to cover its dividend payment in the future.
MidCap Financial Investment beats PIMCO High Income Fund on 7 out of 9 factors compared between the two stocks.
About MidCap Financial Investment
Apollo Investment Corporation is a non-diversified, externally managed closed-end business development and investment company. It is elected to be treated as a business development company (BDC) under the Investment Companies Act 1940 (the 1940 Act) specializing in private equity investments in leveraged buyouts, acquisitions , recapitalizations, growth capital, refinancing and middle market private companies. It provides direct equity, mezzanine loans, senior secured loans, extended 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 thinly traded public company securities and may acquire secondary market investments and structured products. He prefers to invest in preferred stocks, common stocks/interests and warrants and makes equity co-investments. It may invest in cash equivalents, U.S. government securities, high quality debt securities that mature in one year or less, high yield bonds, distressed debt securities, non-U.S. investments or thinly traded public company securities. It also focuses on other investments such as secured loan obligations (CLOs) and credit-linked notes (CLNs). The fund generally invests in construction and building materials, business services, plastics and rubber, advertising, capital goods, education, cable television, chemicals, commodities/goods durable and non-durable consumer goods and customer services, direct marketing, energy – oil and gas, electricity and utilities. The fund also invests in aerospace and defense, wholesale, telecommunications, financial services, hospitality, gaming, leisure, restaurants; environmental industries, healthcare and pharmaceuticals, high-tech industries, beverages, food and tobacco, manufacturing, media – diversified and production, printing and publishing, retail, automation, aviation and consumer transportation, transportation, freight and distribution . It invests mainly in the United States. It primarily invests between $20 million and $250 million in its portfolio companies. The fund seeks to make investments with stated maturities of five to 10 years.
About PIMCO High Income Fund
PIMCO High Income Fund is a closed-end, fixed-income mutual fund launched and managed by Allianz Global Investors Fund Management LLC. The fund is co-managed by Pacific Investment Management Company LLC. It invests in public bond markets around the world. The fund invests in high yield corporate debt securities denominated in US dollars. It uses fundamental analysis as well as a top-down approach to stock selection to make its investments. PIMCO High Income Fund was established on April 30, 2003 and is domiciled in the United States.
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