Mexico Equity & Income Fund (NYSE:MXE) versus MidCap Financial Investment (NASDAQ:MFIC) Critical Analysis

Mexico Equity & Income Fund (NYSE:MXE) and MidCap Financial Investment (NASDAQ:MFIC) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Earnings & Valuation

This table compares Mexico Equity & Income Fund and MidCap Financial Investment’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mexico Equity & Income Fund	$8.91 million	N/A	N/A	N/A	N/A
MidCap Financial Investment	$125.13 million	7.20	$118.76 million	$1.75	7.89

MidCap Financial Investment has higher revenue and earnings than Mexico Equity & Income Fund.

Volatility & Risk

Mexico Equity & Income Fund has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, MidCap Financial Investment has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.

Profitability

This table compares Mexico Equity & Income Fund and MidCap Financial Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mexico Equity & Income Fund	N/A	N/A	N/A
MidCap Financial Investment	41.19%	11.51%	4.65%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Mexico Equity & Income Fund and MidCap Financial Investment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mexico Equity & Income Fund	0	0	0	0	N/A
MidCap Financial Investment	0	3	4	0	2.57

MidCap Financial Investment has a consensus price target of $15.00, suggesting a potential upside of 8.62%. Given MidCap Financial Investment’s higher probable upside, analysts plainly believe MidCap Financial Investment is more favorable than Mexico Equity & Income Fund.

Institutional and Insider Ownership

28.5% of MidCap Financial Investment shares are owned by institutional investors. 6.1% of Mexico Equity & Income Fund shares are owned by insiders. Comparatively, 1.2% of MidCap Financial Investment shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Mexico Equity & Income Fund pays an annual dividend of $0.30 per share and has a dividend yield of 3.4%. MidCap Financial Investment pays an annual dividend of $1.52 per share and has a dividend yield of 11.0%. MidCap Financial Investment pays out 86.9% 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

MidCap Financial Investment beats Mexico Equity & Income Fund on 9 of the 11 factors compared between the two stocks.

About Mexico Equity & Income Fund

Mexico Equity & Income Fund Inc. is a closed ended balanced mutual fund launched and managed by Pichardo Asset Management, S.A. de C.V. The fund invests in the fixed income and public equity markets of Mexico. It also invests some portion in the convertible securities. The fund invests in the stocks of companies operating across diversified sectors. It benchmarks the performance of its portfolio against the Mexbol and MSCI Mexico Index. Mexico Equity & Income Fund Inc. was formed on May 24, 1990 and is domiciled in the United States.

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.