INTL Fcstone (NASDAQ: INTL) and Monroe Capital (NASDAQ:MRCC) are both small-cap financials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Earnings & Valuation

This table compares INTL Fcstone and Monroe Capital’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
INTL Fcstone $29.42 billion 0.03 $6.40 million $0.33 134.45
Monroe Capital $45.02 million 6.37 $24.36 million $0.98 14.45

Monroe Capital has lower revenue, but higher earnings than INTL Fcstone. Monroe Capital is trading at a lower price-to-earnings ratio than INTL Fcstone, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

INTL Fcstone has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500. Comparatively, Monroe Capital has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for INTL Fcstone and Monroe Capital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
INTL Fcstone 0 0 0 0 N/A
Monroe Capital 0 0 3 0 3.00

Monroe Capital has a consensus price target of $16.67, suggesting a potential upside of 17.70%. Given Monroe Capital’s higher possible upside, analysts clearly believe Monroe Capital is more favorable than INTL Fcstone.

Profitability

This table compares INTL Fcstone and Monroe Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
INTL Fcstone 0.02% 1.41% 0.10%
Monroe Capital 35.62% 9.47% 5.60%

Insider & Institutional Ownership

64.8% of INTL Fcstone shares are held by institutional investors. Comparatively, 29.3% of Monroe Capital shares are held by institutional investors. 20.5% of INTL Fcstone shares are held by insiders. Comparatively, 1.8% of Monroe Capital shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Monroe Capital pays an annual dividend of $1.40 per share and has a dividend yield of 9.9%. INTL Fcstone does not pay a dividend. Monroe Capital pays out 142.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Monroe Capital beats INTL Fcstone on 9 of the 15 factors compared between the two stocks.

About INTL Fcstone

INTL Fcstone Inc. is a financial services company. The Company provides financial products, and advisory and execution service. The Company operates through five segments: Commercial Hedging, Global Payments, Securities, Physical Commodities, and Clearing and Execution Services (CES). The Commercial Hedging segment serves its commercial clients through its team of risk management consultants. The Global Payments segment provides global payment solutions to banks and commercial businesses, as well as charities and non-governmental organizations and government organizations. The Securities segment provides solutions that facilitate cross-border trading. The Physical Commodities segment consists of its physical precious metals trading and physical agricultural and energy commodity businesses. The CES segment seeks to provide clearing and execution of exchange-traded futures and options for the institutional and trader market segments.

About Monroe Capital

Monroe Capital Corporation is a closed-end, non-diversified management investment company. The Company is a specialty finance company focused on providing financing primarily to lower middle-market companies in the United States and Canada. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation primarily through investments in senior, unitranche and junior secured debt, and unsecured subordinated debt and equity. The Company provides customized financing solutions focused primarily on senior secured, junior secured and unitranche (a combination of senior secured and junior secured debt in the same facility) debt, and subordinated debt and equity, including equity co-investments in preferred and common stock and warrants. The Company’s investment activities are managed by its investment advisor, Monroe Capital BDC Advisors, LLC (MC Advisors).

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