Morgan Stanley India Investment Fund (NYSE:IIF – Get Rating) and Gladstone Capital (NASDAQ:GLAD – Get Rating) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.
Valuation and Earnings
This table compares Morgan Stanley India Investment Fund and Gladstone Capital’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Morgan Stanley India Investment Fund||N/A||N/A||N/A||N/A||N/A|
|Gladstone Capital||$53.79 million||7.70||$84.30 million||$2.10||5.75|
Insider & Institutional Ownership
51.0% of Morgan Stanley India Investment Fund shares are owned by institutional investors. Comparatively, 10.4% of Gladstone Capital shares are owned by institutional investors. 5.2% of Gladstone Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a summary of recent ratings and price targets for Morgan Stanley India Investment Fund and Gladstone Capital, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Morgan Stanley India Investment Fund||0||0||0||0||N/A|
Gladstone Capital has a consensus price target of $10.00, indicating a potential downside of 17.22%. Given Gladstone Capital’s higher possible upside, analysts plainly believe Gladstone Capital is more favorable than Morgan Stanley India Investment Fund.
Risk and Volatility
Morgan Stanley India Investment Fund has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Gladstone Capital has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.
This table compares Morgan Stanley India Investment Fund and Gladstone Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Morgan Stanley India Investment Fund||N/A||N/A||N/A|
Morgan Stanley India Investment Fund pays an annual dividend of $1.00 per share and has a dividend yield of 4.3%. Gladstone Capital pays an annual dividend of $0.81 per share and has a dividend yield of 6.7%. Gladstone Capital pays out 38.6% of its earnings in the form of a dividend. Gladstone Capital has raised its dividend for 1 consecutive years. Gladstone Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Gladstone Capital beats Morgan Stanley India Investment Fund on 9 of the 11 factors compared between the two stocks.
Morgan Stanley India Investment Fund Company Profile (Get Rating)
Morgan Stanley India Investment Fund, Inc. is a closed ended equity mutual fund launched and managed by Morgan Stanley Investment Management Inc. The fund is co-managed by Morgan Stanley Investment Management Company. It invests in the public equity markets of India. The fund invests in stocks of companies operating across diversified sectors. It benchmarks the performance of its portfolio against the U.S. dollar adjusted BSE National Index. Morgan Stanley India Investment Fund, Inc. was formed on December 22, 1993 and is domiciled in the United States.
Gladstone Capital Company Profile (Get Rating)
Gladstone Capital Corporation is a business development company specializing in lower middle market, growth capital, add on acquisitions, change of control, buy & build strategies, debt refinancing, debt investments in senior term loans, revolving loans, secured first and second lien term loans, senior subordinated loans, unitranche loans, junior subordinated loans, and mezzanine loans and equity investments in the form of common stock, preferred stock, limited liability company interests, or warrants. It operates as a business development company. The fund also makes private equity investments in acquisitions, buyouts and recapitalizations, and refinancing existing debts. It targets small and medium-sized companies in United States. It is industry agnostic and seeks to invest in companies engaged in the business services, light and specialty manufacturing, niche industrial products and services, specialty consumer products and services, energy services, transportation and logistics, healthcare and education services, specialty chemicals, media and communications and aerospace and defense. The fund seeks to invest between $7 million and $30 million in companies that have between $20 million and $150 million in sales and EBITDA between $3 million and $25 million. It prefers to acquire minority stakes. It seeks to exit its investments through strategic acquisitions by other industry participants or financial buyers, initial public offerings of common stock, or other capital market transactions.
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