Analyzing Monroe Capital (NASDAQ:MRCC) and AssetMark Financial (NYSE:AMK)

AssetMark Financial (NYSE:AMKGet Rating) and Monroe Capital (NASDAQ:MRCCGet Rating) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Insider & Institutional Ownership

26.1% of AssetMark Financial shares are owned by institutional investors. Comparatively, 19.1% of Monroe Capital shares are owned by institutional investors. 5.3% of AssetMark Financial shares are owned by company insiders. Comparatively, 3.2% of Monroe 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.

Analyst Ratings

This is a summary of current recommendations for AssetMark Financial and Monroe Capital, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AssetMark Financial 0 0 1 1 3.50
Monroe Capital 0 0 1 0 3.00

AssetMark Financial presently has a consensus price target of $33.00, suggesting a potential upside of 76.00%. Monroe Capital has a consensus price target of $10.50, suggesting a potential upside of 6.38%. Given AssetMark Financial’s stronger consensus rating and higher possible upside, analysts clearly believe AssetMark Financial is more favorable than Monroe Capital.

Profitability

This table compares AssetMark Financial and Monroe Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AssetMark Financial 10.15% 5.33% 3.87%
Monroe Capital 49.43% 9.13% 3.87%

Valuation & Earnings

This table compares AssetMark Financial and Monroe Capital’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AssetMark Financial $530.30 million 2.60 $25.67 million $0.78 24.04
Monroe Capital $53.83 million 3.97 $32.46 million $1.23 8.02

Monroe Capital has lower revenue, but higher earnings than AssetMark Financial. Monroe Capital is trading at a lower price-to-earnings ratio than AssetMark Financial, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

AssetMark Financial has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Monroe Capital has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Summary

AssetMark Financial beats Monroe Capital on 7 of the 13 factors compared between the two stocks.

AssetMark Financial Company Profile (Get Rating)

AssetMark Financial Holdings, Inc. provides wealth management and technology solutions in the United States. It offers an open-architecture product platform, as well as client advice, asset allocation options, practice management, support services, and technology to the financial adviser channel. The company provides integrated technology platform for advisers for accessing a range of automated processes, including new account opening, portfolio construction, streamlined financial planning, customer billing, investor reporting, progress to goal analysis, and client activity tracking; advisory services; and curated investment platform. It also offers SaaS-based financial planning, wellness, and client digital engagement solutions. The company also offers mutual funds; custodial recordkeeping services primarily to investor clients of registered investment advisers; and wealth management services for individual investors. It serves independent advisers who provide wealth management advice to the U.S. investors and advisers. The company was founded in 1996 and is headquartered in Concord, California. AssetMark Financial Holdings, Inc. is a subsidiary of Huatai International Investment Holdings Limited.

Monroe Capital Company Profile (Get Rating)

Monroe Capital Corporation is a business development company specializing in customized financing solutions in senior, unitranche and junior secured debt, subordinated debt financing and to a lesser extent, unsecured debt and equity, including equity co-investments in preferred and common stock and warrants. It also provides financing primarily to leveraged buyouts in lower middle-market companies. It focuses to invest in the United States and Canada. The fund prefers to invest in companies with EBITDA between $3 and $35 million. Its makes minority equity investments.

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