New Mountain Finance (NASDAQ:NMFC) vs. UC Asset (OTCMKTS:UCASU) Critical Analysis

UC Asset (OTCMKTS:UCASUGet Rating) and New Mountain Finance (NASDAQ:NMFCGet Rating) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Insider and Institutional Ownership

31.7% of New Mountain Finance shares are owned by institutional investors. 10.1% of New Mountain Finance shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

UC Asset has a beta of 2.73, suggesting that its share price is 173% more volatile than the S&P 500. Comparatively, New Mountain Finance has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Valuation and Earnings

This table compares UC Asset and New Mountain Finance’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UC Asset $4.53 million 1.50 $10,000.00 N/A N/A
New Mountain Finance $270.96 million 4.68 $201.40 million $1.07 11.75

New Mountain Finance has higher revenue and earnings than UC Asset.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for UC Asset and New Mountain Finance, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UC Asset 0 0 0 0 N/A
New Mountain Finance 0 1 2 0 2.67

New Mountain Finance has a consensus target price of $12.50, indicating a potential downside of 0.56%. Given New Mountain Finance’s higher possible upside, analysts clearly believe New Mountain Finance is more favorable than UC Asset.

Profitability

This table compares UC Asset and New Mountain Finance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UC Asset N/A N/A N/A
New Mountain Finance 38.82% 9.22% 3.73%

Summary

New Mountain Finance beats UC Asset on 10 of the 11 factors compared between the two stocks.

About UC Asset

(Get Rating)

UC Asset, LP, a limited partnership, invests in real estate for development and redevelopment in the Atlanta area. Its investments primarily consist of ownership interests in residential and commercial properties for redevelopment in the Atlanta metropolitan area. The company also focuses to invest in and develop properties located in communities adjacent to airports and/or central business districts for shared home-office accommodations; and invest in hospitality properties. In addition, it invests in debt investment in the form of promissory notes or private loans. UCF Asset LLC serves as the general partner of the company. The company was founded in 2016 and is based in Atlanta, Georgia.

About New Mountain Finance

(Get Rating)

New Mountain Finance Corporation (Nasdaq: NMFC), a business development company is a private equity / buyouts and loan fund specializes in directly investing and lending to middle market companies in defensive growth industries. The fund prefers investing in buyout and middle market companies. It also makes investments in debt securities at all levels of the capital structure including first and second lien debt, unsecured notes and mezzanine securities. In some cases, its investments may also include equity interests. It targets energy, specialty chemicals and materials, trading companies and distributors, commercial printing, diversified support services, education services, environmental and facilities services, office services and supplies, media, distributors, health care services, health care facilities, application software, business services, systems software, federal services, distribution and logistics, interactive home entertainment, telecommunication services, hydroelectric power generation, electric power generation by fossil fuels, electric power generation by nuclear fuels, health care technology, and security and alarm services. The fund seeks to invest in United States of America. It seeks to invest between $10 million and $50 million per transaction. The firm invests through both primary originations and open-market secondary purchases. It invests in companies with EBITDA between $10 million and $200 million and target investments up to a $125 million hold size. The fund seeks a majority stake in its portfolio companies.

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