Medley Capital (NYSE:MCC) and Man Group (OTCMKTS:MNGPF) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings for Medley Capital and Man Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medley Capital 0 3 0 0 2.00
Man Group 0 0 1 0 3.00

Medley Capital presently has a consensus price target of $4.67, indicating a potential upside of 21.53%. Given Medley Capital’s higher probable upside, research analysts plainly believe Medley Capital is more favorable than Man Group.

Institutional & Insider Ownership

25.4% of Medley Capital shares are owned by institutional investors. 8.7% of Medley Capital shares are owned by company 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

Medley Capital pays an annual dividend of $0.40 per share and has a dividend yield of 10.4%. Man Group does not pay a dividend. Medley Capital pays out 59.7% of its earnings in the form of a dividend.

Profitability

This table compares Medley Capital and Man Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Medley Capital -134.96% 5.03% 2.34%
Man Group N/A N/A N/A

Valuation and Earnings

This table compares Medley Capital and Man Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Medley Capital $96.26 million 2.17 -$15.07 million $0.67 5.73
Man Group N/A N/A N/A N/A N/A

Man Group has lower revenue, but higher earnings than Medley Capital.

Summary

Medley Capital beats Man Group on 7 of the 11 factors compared between the two stocks.

Medley Capital Company Profile

Medley Capital Corporation is a business development company. The fund seeks to invest in privately negotiated debt and equity securities of small and middle market companies. It primarily invests in the following sectors: business services; buildings and real estate; automobile; oil and gas; aerospace and defense; home and office furnishings, housewares, and durable consumer products; healthcare, education and childcare; personal, food, and miscellaneous services; retail stores, diversified or conglomerate manufacturing; telecommunications; mining, steel, iron, and non-precious metals; leisure, amusement, motion pictures, and entertainment; chemicals, plastics, and rubber; finance; personal and nondurable consumer products (manufacturing only); beverage, food, and tobacco; containers, packaging, and glass; structure finance securities; machinery (non-agriculture, non-construction, non-electric); diversified or conglomerate service; restaurant and franchise; electronics; and cargo transport. The fund seeks to invest in companies located in North America. The fund targets private debt transactions in companies with enterprise values or asset values between $25 million and $250 million. The fund seeks to invest in companies with debt investment values between $10 million and $50 million. It exits its investments between three years and seven years; it holds most of its investments to maturity or repayment, but may realize or sell some investments earlier. The fund may take a board seat on its investee companies and can also offer managerial assistance to certain portfolio companies. It structures its investments as first lien senior secured loans, second lien senior secured loans, senior secured notes, senior subordinated notes, subordinate notes, unitranche loans, and seeks warrants or other equity participation. The fund may co-invest in privately negotiated transactions under certain conditions.

Man Group Company Profile

Man Group plc provides alternative investment management services worldwide. The company offers a range of liquid investment products and solutions, which include quantitative and discretionary, long only and long short, and single and multi-manager. It distributes its products and solutions directly to institutions; and to private investors through a network of intermediaries. Man Group plc was founded in 1783 and is headquartered in London, the United Kingdom.

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