CI Financial (NYSE:CIXXF – Get Free Report) and Monroe Capital (NASDAQ:MRCC – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.
Analyst Ratings
This is a breakdown of current recommendations for CI Financial and Monroe Capital, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CI Financial | 0 | 1 | 0 | 0 | 2.00 |
| Monroe Capital | 0 | 0 | 1 | 0 | 3.00 |
Monroe Capital has a consensus target price of $9.00, indicating a potential upside of 7.02%. Given Monroe Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Monroe Capital is more favorable than CI Financial.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CI Financial | $2.03 billion | 1.21 | $3.72 million | ($0.33) | -51.86 |
| Monroe Capital | $64.30 million | N/A | $370,000.00 | $0.60 | 14.02 |
CI Financial has higher revenue and earnings than Monroe Capital. CI Financial is trading at a lower price-to-earnings ratio than Monroe Capital, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares CI Financial and Monroe Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CI Financial | -2.28% | 55.43% | 5.23% |
| Monroe Capital | 20.97% | 12.14% | 4.75% |
Volatility and Risk
CI Financial has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Monroe Capital has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.
Dividends
CI Financial pays an annual dividend of $0.59 per share and has a dividend yield of 3.4%. Monroe Capital pays an annual dividend of $1.00 per share and has a dividend yield of 11.9%. CI Financial pays out -178.8% of its earnings in the form of a dividend. Monroe Capital pays out 166.7% 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 CI Financial on 7 of the 13 factors compared between the two stocks.
About CI Financial
CI Financial Corp. is a publicly owned asset management holding company. Through its subsidiaries, the firm manages separate client focused equity, fixed income, and alternative investments portfolios. It also manages mutual funds, hedge funds, and fund of funds for its clients through its subsidiaries. The firm was founded in 1965 and is based in Toronto, Canada with additional offices in Vancouver, Canada; Calgary, Canada; and Montreal, Canada.
About Monroe Capital
Monroe Capital Corporation is a business development company specializing in customized financing solutions in senior, unitranche and junior secured debt, subordinated debt financing and to a lesser extent, unsecured debt and equity, including equity co-investments in preferred and common stock and warrants. It also provides financing primarily to leveraged buyouts in lower middle-market companies. It focuses to invest in the United States and Canada. The fund prefers to invest in companies with EBITDA between $3 and $35 million. Its makes minority equity investments.
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