Resolute Holdings Management (NYSE:RHLD) and MidCap Financial Investment (NASDAQ:MFIC) Critical Contrast

Resolute Holdings Management (NYSE:RHLD) and MidCap Financial Investment (NASDAQ:MFIC) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Resolute Holdings Management and MidCap Financial Investment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Resolute Holdings Management	1	0	0	0	1.00
MidCap Financial Investment	0	4	3	0	2.43

MidCap Financial Investment has a consensus target price of $13.42, indicating a potential upside of 12.75%. Given MidCap Financial Investment’s stronger consensus rating and higher probable upside, analysts plainly believe MidCap Financial Investment is more favorable than Resolute Holdings Management.

Institutional and Insider Ownership

28.5% of MidCap Financial Investment shares are owned by institutional investors. 50.8% of Resolute Holdings Management shares are owned by insiders. Comparatively, 0.8% of MidCap Financial Investment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Resolute Holdings Management 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
Resolute Holdings Management	$420.57 million	1.62	$110.26 million	N/A	N/A
MidCap Financial Investment	$301.78 million	3.68	$98.82 million	$1.08	11.02

Resolute Holdings Management has higher revenue and earnings than MidCap Financial Investment.

Profitability

This table compares Resolute Holdings Management and MidCap Financial Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Resolute Holdings Management	N/A	N/A	N/A
MidCap Financial Investment	30.60%	10.44%	4.41%

Summary

MidCap Financial Investment beats Resolute Holdings Management on 8 of the 11 factors compared between the two stocks.

About Resolute Holdings Management

Resolute Holdings Management, Inc. operates as an alternative asset management platform company. The company was incorporated in 2024 and is based in New York, New York.

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.