Solar Energy Initiatives (OTCMKTS:SNRY) vs. MidCap Financial Investment (NASDAQ:MFIC) Financial Contrast

MidCap Financial Investment (NASDAQ:MFIC) and Solar Energy Initiatives (OTCMKTS:SNRY) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

This table compares MidCap Financial Investment and Solar Energy Initiatives’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MidCap Financial Investment	30.79%	10.33%	4.30%
Solar Energy Initiatives	N/A	N/A	N/A

Insider and Institutional Ownership

28.5% of MidCap Financial Investment shares are owned by institutional investors. Comparatively, 0.1% of Solar Energy Initiatives shares are owned by institutional investors. 0.8% of MidCap Financial Investment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for MidCap Financial Investment and Solar Energy Initiatives, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MidCap Financial Investment	0	7	2	0	2.22
Solar Energy Initiatives	0	0	0	0	0.00

MidCap Financial Investment currently has a consensus target price of $12.75, suggesting a potential upside of 11.35%. Given MidCap Financial Investment’s stronger consensus rating and higher probable upside, research analysts plainly believe MidCap Financial Investment is more favorable than Solar Energy Initiatives.

Earnings and Valuation

This table compares MidCap Financial Investment and Solar Energy Initiatives”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MidCap Financial Investment	$301.78 million	3.54	$98.82 million	$1.06	10.80
Solar Energy Initiatives	N/A	N/A	N/A	N/A	N/A

MidCap Financial Investment has higher revenue and earnings than Solar Energy Initiatives.

Volatility & Risk

MidCap Financial Investment has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Solar Energy Initiatives has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500.

Summary

MidCap Financial Investment beats Solar Energy Initiatives on 10 of the 10 factors compared between the two stocks.

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.

About Solar Energy Initiatives

Solar Energy Initiatives, Inc., together with its subsidiaries, markets and sells solar power products, systems, and services in the United States and the Caribbean. The company primarily designs, markets, and sells solar power systems for residential and commercial customers; and designs, markets, sells, owns, and operates solar power systems for municipal and commercial customers, as well as designs, develops, and manages solar parks. Its products include photovoltaic panels, photovoltaic roofing systems, solar thermal products, balance of system products, and management system products. The company was formerly known as NP Capital Corp. and changed its name to Solar Energy Initiatives, Inc. in September 2008. Solar Energy Initiatives, Inc. was founded in 2006 and is based in Cary, North Carolina.