Morgan Stanley Direct Lending (NYSE:MSDL – Get Free Report) is one of 665 public companies in the “Holding & other investment offices” industry, but how does it weigh in compared to its peers? We will compare Morgan Stanley Direct Lending to similar companies based on the strength of its earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.
Insider and Institutional Ownership
53.9% of shares of all “Holding & other investment offices” companies are held by institutional investors. 25.0% of shares of all “Holding & other investment offices” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Dividends
Morgan Stanley Direct Lending pays an annual dividend of $2.00 per share and has a dividend yield of 9.3%. Morgan Stanley Direct Lending pays out 63.9% of its earnings in the form of a dividend. As a group, “Holding & other investment offices” companies pay a dividend yield of 9.7% and pay out 137.2% of their earnings in the form of a dividend.
Earnings & Valuation
Gross Revenue | Net Income | Price/Earnings Ratio | |
Morgan Stanley Direct Lending | $257.26 million | $231.01 million | 6.86 |
Morgan Stanley Direct Lending Competitors | $1.12 billion | -$58.21 million | 56.41 |
Morgan Stanley Direct Lending’s peers have higher revenue, but lower earnings than Morgan Stanley Direct Lending. Morgan Stanley Direct Lending is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Profitability
This table compares Morgan Stanley Direct Lending and its peers’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Morgan Stanley Direct Lending | 62.81% | 13.08% | 6.23% |
Morgan Stanley Direct Lending Competitors | -34.69% | -44.65% | 0.01% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Morgan Stanley Direct Lending and its peers, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Morgan Stanley Direct Lending | 0 | 3 | 3 | 0 | 2.50 |
Morgan Stanley Direct Lending Competitors | 122 | 568 | 885 | 14 | 2.50 |
Morgan Stanley Direct Lending currently has a consensus target price of $21.58, suggesting a potential upside of 0.53%. As a group, “Holding & other investment offices” companies have a potential upside of 79.59%. Given Morgan Stanley Direct Lending’s peers higher probable upside, analysts clearly believe Morgan Stanley Direct Lending has less favorable growth aspects than its peers.
Summary
Morgan Stanley Direct Lending peers beat Morgan Stanley Direct Lending on 8 of the 14 factors compared.
About Morgan Stanley Direct Lending
Morgan Stanley Direct Lending Fund is a business development company. It is a non-diversified, externally managed specialty finance company focused on lending to middle-market companies. Morgan Stanley Direct Lending Fund is based in NEW YORK.
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