Morgan Stanley Direct Lending (MSDL) versus Its Rivals Financial Survey

Morgan Stanley Direct Lending (NYSE:MSDL) is one of 670 publicly-traded companies in the “Holding & other investment offices” industry, but how does it weigh in compared to its rivals? We will compare Morgan Stanley Direct Lending to related companies based on the strength of its profitability, analyst recommendations, institutional ownership, valuation, risk, dividends and earnings.

Profitability

This table compares Morgan Stanley Direct Lending and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Morgan Stanley Direct Lending	62.81%	11.51%	5.99%
Morgan Stanley Direct Lending Competitors	-34.70%	-44.81%	-0.04%

Valuation & Earnings

This table compares Morgan Stanley Direct Lending and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Morgan Stanley Direct Lending	$367.74 million	$231.01 million	6.78
Morgan Stanley Direct Lending Competitors	$979.29 million	-$53.08 million	54.33

Morgan Stanley Direct Lending’s rivals have higher revenue, but lower earnings than Morgan Stanley Direct Lending. Morgan Stanley Direct Lending is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Morgan Stanley Direct Lending pays an annual dividend of $2.00 per share and has a dividend yield of 9.4%. Morgan Stanley Direct Lending pays out 63.9% of its earnings in the form of a dividend. As a group, “Holding & other investment offices” companies pay a dividend yield of 8.1% and pay out 71.3% of their earnings in the form of a dividend. Morgan Stanley Direct Lending is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

53.8% of shares of all “Holding & other investment offices” companies are held by institutional investors. 25.1% of shares of all “Holding & other investment offices” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Morgan Stanley Direct Lending and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Morgan Stanley Direct Lending	0	3	3	0	2.50
Morgan Stanley Direct Lending Competitors	112	558	875	14	2.51

Morgan Stanley Direct Lending currently has a consensus target price of $21.58, suggesting a potential upside of 1.66%. As a group, “Holding & other investment offices” companies have a potential upside of 90.72%. Given Morgan Stanley Direct Lending’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Morgan Stanley Direct Lending has less favorable growth aspects than its rivals.

Summary

Morgan Stanley Direct Lending rivals beat Morgan Stanley Direct Lending on 8 of the 14 factors compared.

Morgan Stanley Direct Lending Company Profile

Morgan Stanley Direct Lending Fund is a business development company. It is a non-diversified, externally managed specialty finance company focused on lending to middle-market companies. Morgan Stanley Direct Lending Fund is based in NEW YORK.