MidCap Financial Investment (NASDAQ:MFIC) vs. Coinbase Global (NASDAQ:COIN) Financial Survey

Coinbase Global (NASDAQ:COIN) and MidCap Financial Investment (NASDAQ:MFIC) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.

Risk and Volatility

Coinbase Global has a beta of 3.7, suggesting that its share price is 270% more volatile than the S&P 500. Comparatively, MidCap Financial Investment has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Coinbase Global	41.99%	15.70%	7.74%
MidCap Financial Investment	30.79%	10.33%	4.30%

Earnings & Valuation

This table compares Coinbase Global and MidCap Financial Investment”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coinbase Global	$6.56 billion	6.78	$2.58 billion	$11.56	14.28
MidCap Financial Investment	$301.78 million	3.50	$98.82 million	$1.06	10.67

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

Institutional & Insider Ownership

68.8% of Coinbase Global shares are owned by institutional investors. Comparatively, 28.5% of MidCap Financial Investment shares are owned by institutional investors. 16.6% of Coinbase Global shares are owned by company insiders. Comparatively, 0.8% of MidCap Financial Investment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Coinbase Global and MidCap Financial Investment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coinbase Global	1	11	20	0	2.59
MidCap Financial Investment	0	7	2	0	2.22

Coinbase Global presently has a consensus target price of $351.58, suggesting a potential upside of 112.93%. MidCap Financial Investment has a consensus target price of $12.75, suggesting a potential upside of 12.73%. Given Coinbase Global’s stronger consensus rating and higher probable upside, research analysts clearly believe Coinbase Global is more favorable than MidCap Financial Investment.

Summary

Coinbase Global beats MidCap Financial Investment on 14 of the 14 factors compared between the two stocks.

About Coinbase Global

Coinbase Global, Inc. provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company offers the primary financial account in the crypto economy for consumers; and a marketplace with a pool of liquidity for transacting in crypto assets for institutions. It also provides technology and services that enable developers to build crypto products and securely accept crypto assets as payment. The company was founded in 2012 and is based in Wilmington, Delaware.

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.