CIIG Capital Partners II (OTCMKTS:CIIG) and Morgan Stanley Direct Lending (NYSE:MSDL) Critical Analysis

Morgan Stanley Direct Lending (NYSE:MSDL) and CIIG Capital Partners II (OTCMKTS:CIIG) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Valuation and Earnings

This table compares Morgan Stanley Direct Lending and CIIG Capital Partners II’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Morgan Stanley Direct Lending	$367.74 million	5.64	$231.01 million	$3.13	7.45
CIIG Capital Partners II	N/A	N/A	-$1.72 million	N/A	N/A

Morgan Stanley Direct Lending has higher revenue and earnings than CIIG Capital Partners II.

Analyst Recommendations

This is a summary of recent ratings and target prices for Morgan Stanley Direct Lending and CIIG Capital Partners II, 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
CIIG Capital Partners II	0	0	0	0	N/A

Morgan Stanley Direct Lending currently has a consensus price target of $21.58, indicating a potential downside of 7.45%. Given Morgan Stanley Direct Lending’s higher possible upside, research analysts clearly believe Morgan Stanley Direct Lending is more favorable than CIIG Capital Partners II.

Insider and Institutional Ownership

70.0% of CIIG Capital Partners II shares are owned by institutional investors. 0.2% of Morgan Stanley Direct Lending shares are owned by company insiders. Comparatively, 41.2% of CIIG Capital Partners II shares are owned 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 Morgan Stanley Direct Lending and CIIG Capital Partners II’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Morgan Stanley Direct Lending	62.81%	13.08%	6.23%
CIIG Capital Partners II	N/A	N/A	-0.58%

Summary

Morgan Stanley Direct Lending beats CIIG Capital Partners II on 7 of the 9 factors compared between the two stocks.

About Morgan Stanley Direct Lending

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.

About CIIG Capital Partners II

CIIG Capital Partners II, Inc. does not have significant operations. The company focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or related business combination with one or more businesses. It intends to identify business opportunities in the field of technology, media, and telecommunications industries, as well as companies with business models that are enabled by technology. CIIG Capital Partners II, Inc. was incorporated in 2021 and is based in New York, New York.