MidCap Financial Investment (NASDAQ:MFIC) and BTC Digital (NASDAQ:BTCT) Head to Head Review

BTC Digital (NASDAQ:BTCT) and MidCap Financial Investment (NASDAQ:MFIC) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Institutional & Insider Ownership

7.3% of BTC Digital shares are held by institutional investors. Comparatively, 28.5% of MidCap Financial Investment shares are held by institutional investors. 0.2% of BTC Digital shares are held by insiders. Comparatively, 0.8% of MidCap Financial Investment shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares BTC Digital and MidCap Financial Investment”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BTC Digital	$11.68 million	1.10	-$1.99 million	($1.20)	-1.43
MidCap Financial Investment	$108.66 million	10.04	$98.82 million	$1.06	11.03

MidCap Financial Investment has higher revenue and earnings than BTC Digital. BTC Digital is trading at a lower price-to-earnings ratio than MidCap Financial Investment, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

BTC Digital has a beta of 5.55, indicating that its share price is 455% more volatile than the S&P 500. Comparatively, MidCap Financial Investment has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Profitability

This table compares BTC Digital and MidCap Financial Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BTC Digital	N/A	N/A	N/A
MidCap Financial Investment	30.79%	10.33%	4.30%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for BTC Digital and MidCap Financial Investment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BTC Digital	1	0	0	0	1.00
MidCap Financial Investment	0	6	3	0	2.33

MidCap Financial Investment has a consensus price target of $13.04, suggesting a potential upside of 11.46%. Given MidCap Financial Investment’s stronger consensus rating and higher possible upside, analysts clearly believe MidCap Financial Investment is more favorable than BTC Digital.

Summary

MidCap Financial Investment beats BTC Digital on 13 of the 14 factors compared between the two stocks.

About BTC Digital

BTC Digital Ltd. a crypto asset technology company engages in bitcoin mining business. It is also involved in mining machines resale and rental business. The company was formerly known as Meten Holding Group Ltd. and changed its name to BTC Digital Ltd. in August 2023. The company was founded in 2006 and is headquartered in Shenzhen, China.

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.