AGM Group (NASDAQ:AGMH) versus MidCap Financial Investment (NASDAQ:MFIC) Financial Analysis

AGM Group (NASDAQ:AGMH) and MidCap Financial Investment (NASDAQ:MFIC) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Volatility and Risk

AGM Group has a beta of 2.03, indicating that its stock price is 103% more volatile than the S&P 500. Comparatively, MidCap Financial Investment has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

Insider and Institutional Ownership

28.5% of MidCap Financial Investment shares are owned by institutional investors. 34.9% of AGM Group shares are owned by insiders. Comparatively, 0.8% of MidCap Financial Investment shares are owned 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for AGM Group and MidCap Financial Investment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AGM Group	1	0	0	0	1.00
MidCap Financial Investment	0	4	3	0	2.43

AGM Group currently has a consensus price target of $5.77, suggesting a potential upside of 74.85%. MidCap Financial Investment has a consensus price target of $13.42, suggesting a potential upside of 10.70%. Given AGM Group’s higher probable upside, analysts clearly believe AGM Group is more favorable than MidCap Financial Investment.

Profitability

This table compares AGM Group and MidCap Financial Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AGM Group	N/A	N/A	N/A
MidCap Financial Investment	30.60%	10.44%	4.41%

Earnings and Valuation

This table compares AGM Group and MidCap Financial Investment”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AGM Group	$32.04 million	0.05	$3.12 million	N/A	N/A
MidCap Financial Investment	$301.78 million	3.75	$98.82 million	$1.08	11.22

MidCap Financial Investment has higher revenue and earnings than AGM Group.

Summary

MidCap Financial Investment beats AGM Group on 9 of the 12 factors compared between the two stocks.

About AGM Group

AGM Group Holdings Inc. operates as a technology company, engages in the research and development of blockchain-oriented ASIC chip in Singapore, Hong Kong, and China. The company offers MetaTrader 5, a futures trading solution; and foreign exchange trading system that provides services to financial institutions. It also engages in the research and development, manufacture, and sales of technology hardware. In addition, the company sells cryptocurrency mining machine and standardized computing equipment, and technical support plans, as well as delivers fintech software services. AGM Group Holdings Inc. was incorporated in 2015 and is based in Wan Chai, Hong Kong.

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.