Comparing Healthcare Capital (OTCMKTS:HCCC) and Morgan Stanley Direct Lending (NYSE:MSDL)

Morgan Stanley Direct Lending (NYSE:MSDL) and Healthcare Capital (OTCMKTS:HCCC) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Earnings & Valuation

This table compares Morgan Stanley Direct Lending and Healthcare Capital’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Morgan Stanley Direct Lending	$367.74 million	5.39	$231.01 million	$3.13	7.12
Healthcare Capital	N/A	N/A	N/A	N/A	N/A

Morgan Stanley Direct Lending has higher revenue and earnings than Healthcare Capital.

Profitability

This table compares Morgan Stanley Direct Lending and Healthcare Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Morgan Stanley Direct Lending	62.81%	13.08%	6.23%
Healthcare Capital	N/A	N/A	N/A

Institutional and Insider Ownership

70.5% of Healthcare Capital shares are owned by institutional investors. 0.2% of Morgan Stanley Direct Lending shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Morgan Stanley Direct Lending and Healthcare Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Morgan Stanley Direct Lending	0	3	3	0	2.50
Healthcare Capital	0	0	0	0	N/A

Morgan Stanley Direct Lending currently has a consensus price target of $21.58, indicating a potential downside of 3.17%. Given Morgan Stanley Direct Lending’s higher possible upside, analysts plainly believe Morgan Stanley Direct Lending is more favorable than Healthcare Capital.

Summary

Morgan Stanley Direct Lending beats Healthcare Capital on 7 of the 8 factors compared between the two stocks.

About Morgan Stanley Direct Lending

Morgan Stanley Direct Lending Fund is a business development company. It is a non-diversified, externally managed specialty finance company focused on lending to middle-market companies. Morgan Stanley Direct Lending Fund is based in NEW YORK.

About Healthcare Capital

Healthcare Capital Corp. does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company was incorporated in 2020 and is based in Wilmington, Delaware.