Financial Survey: Bitcoin Depot (NASDAQ:BTM) versus MidCap Financial Investment (NASDAQ:MFIC)

Bitcoin Depot (NASDAQ:BTM) and MidCap Financial Investment (NASDAQ:MFIC) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

Volatility and Risk

Bitcoin Depot has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, MidCap Financial Investment has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Earnings & Valuation

This table compares Bitcoin Depot and MidCap Financial Investment”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitcoin Depot	$573.70 million	0.46	-$11.69 million	$0.10	40.70
MidCap Financial Investment	$301.78 million	3.98	$98.82 million	$1.08	11.92

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

Insider and Institutional Ownership

9.2% of Bitcoin Depot shares are owned by institutional investors. Comparatively, 28.5% of MidCap Financial Investment shares are owned by institutional investors. 70.2% of Bitcoin Depot shares are owned by insiders. Comparatively, 0.8% of MidCap Financial Investment shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Bitcoin Depot and MidCap Financial Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bitcoin Depot	0.44%	-44.12%	2.92%
MidCap Financial Investment	30.60%	10.44%	4.41%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Bitcoin Depot and MidCap Financial Investment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitcoin Depot	0	0	4	1	3.20
MidCap Financial Investment	0	3	2	0	2.40

Bitcoin Depot presently has a consensus price target of $5.6667, suggesting a potential upside of 39.23%. MidCap Financial Investment has a consensus price target of $13.50, suggesting a potential upside of 4.90%. Given Bitcoin Depot’s stronger consensus rating and higher possible upside, equities analysts clearly believe Bitcoin Depot is more favorable than MidCap Financial Investment.

Summary

MidCap Financial Investment beats Bitcoin Depot on 8 of the 15 factors compared between the two stocks.

About Bitcoin Depot

Bitcoin Depot Inc. owns and operates a network of cryptocurrency kiosks in North America. Its customers can buy and sell bitcoin, litecoin, and ethereum cryptocurrencies using the BTM kiosk network and other services. The company also engages in the sale of cryptocurrency to consumers at a network of retail locations through its BDCheckout product offering, as well as its website through over-the-counter trade. The company is headquartered in Atlanta, Georgia. Bitcoin Depot Inc. is a subsidiary of BT Assets, Inc.

About MidCap Financial Investment

MidCap Financial Investment Corporation (Former name Apollo Investment Corporation) is business development company and a closed-end, externally managed, non-diversified management investment company. It is elected to be treated as a business development company (BDC) under the Investment Company Act of 1940 (the 1940 Act) specializing in private equity investments in leveraged buyouts, acquisitions, recapitalizations, growth capital, refinancing and private middle market companies. It provides direct equity capital, mezzanine, first lien secured loans, stretch senior loans, unitranche loans, second lien secured loans and senior secured loans, unsecured debt, and subordinated debt and loans. It also seeks to invest in PIPES transactions. The fund may also invest in securities of public companies that are thinly traded and may acquire investments in the secondary market and structured products. It prefers to invest in preferred equity, common equity / interests and warrants and makes equity co-investments. It may invest in cash equivalents, U.S. government securities, high-quality debt investments that mature in one year or less, high-yield bonds, distressed debt, non-U.S. investments, or securities of public companies that are not thinly traded. It also focuses on other investments such as collateralized loan obligations (CLOs) and credit-linked notes (CLNs). The fund typically invests in construction and building materials, business services, plastics & rubber, advertising, capital equipment, education, cable television, chemicals, consumer products/goods durable and non-durable and customer services, direct marketing, energy oil & gas, electricity and utilities. The fund also invest in aerospace & defense, wholesale, telecommunications, financial services, hotel, gaming, leisure, restaurants; environmental industries, healthcare and pharmaceuticals, high tech industries, beverages, food and tobacco, manufacturing, media diversified & production, printing and publishing, retail, automation, aviation and consumer transport, transportation, cargo and distribution. It primarily invests in United States. It primarily invests between $20 million and $250 million in its portfolio companies and EBITDA with less than $75 million. The fund seeks to make investments with stated maturities of five to 10 years.