Comparing ONEX (OTCMKTS:ONEXF) and Barings Participation Investors (NYSE:MPV)

ONEX (OTCMKTS:ONEXF) and Barings Participation Investors (NYSE:MPV) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Insider and Institutional Ownership

0.7% of ONEX shares are held by institutional investors. 1.4% of Barings Participation Investors shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

ONEX has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Barings Participation Investors has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for ONEX and Barings Participation Investors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ONEX	0	1	2	0	2.67
Barings Participation Investors	0	0	0	0	0.00

Profitability

This table compares ONEX and Barings Participation Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ONEX	68.63%	7.16%	4.75%
Barings Participation Investors	N/A	N/A	N/A

Dividends

ONEX pays an annual dividend of $0.28 per share and has a dividend yield of 0.3%. Barings Participation Investors pays an annual dividend of $1.48 per share and has a dividend yield of 8.6%. ONEX pays out 3.2% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares ONEX and Barings Participation Investors”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ONEX	$899.00 million	6.51	$617.00 million	$8.87	9.61
Barings Participation Investors	$14.64 million	12.70	N/A	N/A	N/A

ONEX has higher revenue and earnings than Barings Participation Investors.

Summary

ONEX beats Barings Participation Investors on 8 of the 12 factors compared between the two stocks.

About ONEX

Onex Corporation is a private equity firm specializing in acquisitions and platform acquisitions. The firm makes investments in buyouts, large- middle market, large-cap, mid-cap, and small-cap market and distressed companies. It also invests in recapitalization, growth capital, corporate carve-outs of subsidiaries and mission-critical supply divisions from multinational corporations, operational restructurings of undervalued businesses, and builds up. The firm seeks to invest in technology, electronics manufacturing services, industrial, aerospace, healthcare, retail, restaurants, industrials products, customer care services, metal services, building products, entertainment, gaming, cabinetry products, commercial vehicles, commercial and investment banking, financial services, commercial and multi-unit residential real estate. It invests in global businesses headquartered in North America, including United States and Canada, or Europe. The firm seeks to invest between $125 million and $1 billion in companies that have minimum revenues of $300 million. It does not consider size if the company is in an industry in which the firm already has presence. The firm seeks to make direct as well as co-investments through managed private equity, real estate and credit funds. It seeks to acquire a control position in its portfolio companies. Onex Corporation was founded in 1984 and is based in Toronto, Canada with additional offices in New York, New York; Englewood Cliffs, New Jersey; Boston, Massachusetts and London, United Kingdom.

About Barings Participation Investors

Barings Participation Investors is a closed ended fixed income mutual fund launched and managed by Barings LLC. The fund invests in the fixed income markets of the United States. It primarily invests in below-investment grade, long-term corporate debt obligations which are directly purchased from its issuers. The fund also seeks to invest in warrants, conversion rights, or other equity related instruments. It benchmarks the performance of its portfolio against Standard and Poor's Industrials Composite, Russell 2000 Index, Lehman Brothers U.S. High Yield Index, and Lehman Brothers Intermediate U.S. Credit Index. The fund was formerly known as Babson Capital Participation Investors. Barings Participation Investors was formed on April 7, 1988 and is domiciled in the United States.