Critical Survey: MCG Capital Corp (MCGC) & Medley Capital Corporation (MCC)
MCG Capital Corp (NASDAQ: MCGC) and Medley Capital Corporation (NYSE:MCC) are both closed end funds companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.
Earnings and Valuation
This table compares MCG Capital Corp and Medley Capital Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|MCG Capital Corp||N/A||N/A||N/A||$0.11||N/A|
|Medley Capital Corporation||$120.75 million||2.59||-$27.96 million||($0.10)||-57.40|
MCG Capital Corp has higher revenue, but lower earnings than Medley Capital Corporation. Medley Capital Corporation is trading at a lower price-to-earnings ratio than MCG Capital Corp, indicating that it is currently the more affordable of the two stocks.
Medley Capital Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 11.1%. MCG Capital Corp does not pay a dividend. Medley Capital Corporation pays out -640.0% of its earnings in the form of a dividend.
Institutional and Insider Ownership
29.2% of Medley Capital Corporation shares are owned by institutional investors. 8.7% of Medley Capital Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for MCG Capital Corp and Medley Capital Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MCG Capital Corp||0||0||0||0||N/A|
|Medley Capital Corporation||0||5||0||0||2.00|
Medley Capital Corporation has a consensus price target of $7.00, suggesting a potential upside of 21.95%.
This table compares MCG Capital Corp and Medley Capital Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MCG Capital Corp||-9.19%||-0.34%||-0.33%|
|Medley Capital Corporation||-6.07%||8.04%||3.92%|
Medley Capital Corporation beats MCG Capital Corp on 8 of the 9 factors compared between the two stocks.
About MCG Capital Corp
PFLT Funding II, LLC, formerly MCG Capital Corporation, is a United States-based company. The Company provides products and services.
About Medley Capital Corporation
Medley Capital Corporation is a non-diversified closed-end management investment company. The Company’s investment objective is to generate current income and capital appreciation by lending directly to privately-held middle market companies, primarily through directly originated transactions to help these companies expand their business, refinance and make acquisitions. Its investment portfolio includes senior secured first lien term loans, senior secured second lien term loans, unitranche, senior secured first lien notes, subordinated notes and warrants and minority equity securities. It may invest up to 100% of its assets in securities acquired directly from issuers in privately negotiated transactions. Its portfolio of investments includes industries, including banking, finance, insurance and real estate; construction and building; healthcare and pharmaceuticals; beverage and food, and telecommunications. MCC Advisors LLC is the Company’s investment advisor.
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