Critical Analysis: Barings Corporate Investors (NYSE:MCI) and ONEX (OTCMKTS:ONEXF)

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

Valuation & Earnings

This table compares Barings Corporate Investors and ONEX”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Barings Corporate Investors	$30.18 million	11.92	N/A	N/A	N/A
ONEX	$899.00 million	6.48	$617.00 million	$8.87	9.58

ONEX has higher revenue and earnings than Barings Corporate Investors.

Analyst Ratings

This is a summary of recent recommendations for Barings Corporate Investors and ONEX, as reported by MarketBeat.com.

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

Institutional and Insider Ownership

0.7% of ONEX shares are owned by institutional investors. 1.1% of Barings Corporate Investors shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

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

Dividends

Barings Corporate Investors pays an annual dividend of $1.60 per share and has a dividend yield of 9.1%. ONEX pays an annual dividend of $0.29 per share and has a dividend yield of 0.3%. ONEX pays out 3.3% of its earnings in the form of a dividend.

Volatility and Risk

Barings Corporate Investors has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, ONEX has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Summary

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

About Barings Corporate Investors

Babson Capital Corporate Investors trust is a closed ended fixed income mutual fund launched and managed by Barings LLC. It invests in fixed income markets of the United States. The fund seeks to invest in securities of companies operating across diversified sectors. It primarily invests in a portfolio of privately placed, below-investment grade, long term corporate debt obligations. The fund also invests in marketable investment grade debt securities, other marketable debt securities, and marketable common stocks. It was formerly known as Babson Capital Corporate Investors. Babson Capital Corporate Investors trust was formed in 1971 and is domiciled in the United States.

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.