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

Dividends

PJT Partners pays an annual dividend of $0.20 per share and has a dividend yield of 0.4%. Monroe Capital pays an annual dividend of $1.40 per share and has a dividend yield of 10.3%. PJT Partners pays out 13.0% of its earnings in the form of a dividend. Monroe Capital pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares PJT Partners 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
PJT Partners $499.28 million 2.26 -$28.32 million $1.54 35.65
Monroe Capital $51.11 million 5.44 $12.15 million $1.40 9.71

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

Institutional & Insider Ownership

63.8% of PJT Partners shares are owned by institutional investors. Comparatively, 25.2% of Monroe Capital shares are owned by institutional investors. 8.0% of PJT Partners shares are owned by insiders. Comparatively, 1.9% of Monroe Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for PJT Partners and Monroe Capital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PJT Partners 0 3 1 0 2.25
Monroe Capital 0 1 1 0 2.50

PJT Partners currently has a consensus price target of $54.50, indicating a potential downside of 0.73%. Monroe Capital has a consensus price target of $15.00, indicating a potential upside of 10.29%. Given Monroe Capital’s stronger consensus rating and higher probable upside, analysts clearly believe Monroe Capital is more favorable than PJT Partners.

Volatility & Risk

PJT Partners has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, Monroe Capital has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
PJT Partners -4.11% 24.71% 12.78%
Monroe Capital 25.14% 10.95% 6.12%

Summary

PJT Partners beats Monroe Capital on 8 of the 15 factors compared between the two stocks.

About PJT Partners

PJT Partners Inc. provides various strategic advisory, restructuring and special situations, and private fund advisory and placement services to corporations, financial sponsors, institutional investors, and governments worldwide. It offers a range of financial advisory and transaction execution capability, including mergers and acquisitions, joint ventures, minority investments, asset swaps, divestitures, takeover defenses, corporate finance advisory, private placements, and distressed sales. The company also advices companies, creditors, and financial sponsors on recapitalizations, reorganizations, exchange offers, debt repurchases, capital raises, and distressed mergers and acquisitions. In addition, it offers private fund advisory and placement services for a range of investment strategies, including private equity, hedge fund, real estate, and secondary advisory. The company was formerly known as Blackstone Advisory Inc. and changed its name to PJT Partners Inc. in March 2015. PJT Partners Inc. was incorporated in 2014 and is headquartered in New York, New York.

About Monroe Capital

Monroe Capital Corporation is a business development company specializing in senior, unitranche and junior secured debt and to a lesser extent, unsecured debt and equity investments, and buyouts in middle-market companies. The fund prefers to invest in casinos and gaming, broadcasting, publishing, alcoholic beverage and tobacco distribution, oil and gas, insurance, pharmaceuticals and bio sciences, aerospace and defense, commercial printing, natural rubber, glass, container and packaging, metals and mining, and real estate. It focuses to invest in the United States and Canada. The fund focuses on companies with a maximum of $25 million in EBITDA per year.

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