Head-To-Head Analysis: Monroe Capital (NASDAQ:MRCC) and Bridge Investment Group (NYSE:BRDG)

Bridge Investment Group (NYSE:BRDGGet Rating) and Monroe Capital (NASDAQ:MRCCGet Rating) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.

Analyst Ratings

This is a breakdown of current ratings and price targets for Bridge Investment Group and Monroe Capital, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bridge Investment Group 0 1 4 0 2.80
Monroe Capital 0 0 1 0 3.00

Bridge Investment Group presently has a consensus target price of $21.20, suggesting a potential upside of 25.00%. Monroe Capital has a consensus target price of $10.50, suggesting a potential upside of 4.37%. Given Bridge Investment Group’s higher possible upside, analysts plainly believe Bridge Investment Group is more favorable than Monroe Capital.

Insider and Institutional Ownership

65.5% of Bridge Investment Group shares are held by institutional investors. Comparatively, 19.1% of Monroe Capital shares are held by institutional investors. 65.9% of Bridge Investment Group shares are held by company insiders. Comparatively, 3.5% of Monroe Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Bridge Investment Group and Monroe Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bridge Investment Group 29.40% 5.41% 3.28%
Monroe Capital 49.43% 9.13% 3.87%

Dividends

Bridge Investment Group pays an annual dividend of $1.04 per share and has a dividend yield of 6.1%. Monroe Capital pays an annual dividend of $1.00 per share and has a dividend yield of 9.9%. Bridge Investment Group pays out 21.5% of its earnings in the form of a dividend. Monroe Capital pays out 81.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Bridge Investment Group and Monroe Capital’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bridge Investment Group $330.01 million 1.50 $23.23 million $4.84 3.50
Monroe Capital $53.83 million 4.05 $32.46 million $1.23 8.18

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

Summary

Monroe Capital beats Bridge Investment Group on 8 of the 15 factors compared between the two stocks.

Bridge Investment Group Company Profile (Get Rating)

Bridge Investment Group Holdings Inc. engages in the real estate investment management business in the United States. It manages capital on behalf of approximately hundred global institutions and 6,500 individual investors across approximately 25 investment vehicles. The company was founded in 2009 and is headquartered in Salt Lake City, Utah.

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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