Monroe Capital Corporation (NASDAQ: MRCC) and Banco Latinoamericano de Comercio Exterior, (NYSE:BLX) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Valuation and Earnings

This table compares Monroe Capital Corporation and Banco Latinoamericano de Comercio Exterior,’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Monroe Capital Corporation N/A N/A N/A $0.89 15.87
Banco Latinoamericano de Comercio Exterior, $127.99 million 7.88 $82.26 million $2.09 12.26

Banco Latinoamericano de Comercio Exterior, has higher revenue and earnings than Monroe Capital Corporation. Banco Latinoamericano de Comercio Exterior, is trading at a lower price-to-earnings ratio than Monroe Capital Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Monroe Capital Corporation and Banco Latinoamericano de Comercio Exterior,, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monroe Capital Corporation 0 1 5 0 2.83
Banco Latinoamericano de Comercio Exterior, 1 2 0 0 1.67

Monroe Capital Corporation presently has a consensus target price of $16.90, indicating a potential upside of 19.69%. Banco Latinoamericano de Comercio Exterior, has a consensus target price of $27.50, indicating a potential upside of 7.30%. Given Monroe Capital Corporation’s stronger consensus rating and higher possible upside, research analysts clearly believe Monroe Capital Corporation is more favorable than Banco Latinoamericano de Comercio Exterior,.

Dividends

Monroe Capital Corporation pays an annual dividend of $1.40 per share and has a dividend yield of 9.9%. Banco Latinoamericano de Comercio Exterior, pays an annual dividend of $1.54 per share and has a dividend yield of 6.0%. Monroe Capital Corporation pays out 157.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Banco Latinoamericano de Comercio Exterior, pays out 73.7% of its earnings in the form of a dividend.

Volatility & Risk

Monroe Capital Corporation has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, Banco Latinoamericano de Comercio Exterior, has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500.

Profitability

This table compares Monroe Capital Corporation and Banco Latinoamericano de Comercio Exterior,’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monroe Capital Corporation 31.60% 9.39% 5.49%
Banco Latinoamericano de Comercio Exterior, 31.94% 8.09% 1.18%

Insider & Institutional Ownership

27.8% of Monroe Capital Corporation shares are held by institutional investors. Comparatively, 16.1% of Banco Latinoamericano de Comercio Exterior, shares are held by institutional investors. 1.9% of Monroe Capital Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Monroe Capital Corporation beats Banco Latinoamericano de Comercio Exterior, on 9 of the 14 factors compared between the two stocks.

Monroe Capital Corporation Company Profile

Monroe Capital Corporation is a closed-end, non-diversified management investment company. The Company is a specialty finance company focused on providing financing primarily to lower middle-market companies in the United States and Canada. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation primarily through investments in senior, unitranche and junior secured debt, and unsecured subordinated debt and equity. The Company provides customized financing solutions focused primarily on senior secured, junior secured and unitranche (a combination of senior secured and junior secured debt in the same facility) debt, and subordinated debt and equity, including equity co-investments in preferred and common stock and warrants. The Company’s investment activities are managed by its investment advisor, Monroe Capital BDC Advisors, LLC (MC Advisors).

Banco Latinoamericano de Comercio Exterior, Company Profile

Banco Latinoamericano de Comercio Exterior, S.A. (the Bank) is a specialized multinational bank. The Bank is established to support the financing of trade and economic integration in Latin America and the Caribbean. The Company operates in two segments: Commercial and Treasury. The Bank’s Commercial segment incorporates all of the Bank’s financial intermediation and fees generated by the commercial portfolio activities, such as origination of bilateral and syndicated credits, short- and medium-term loans, acceptances and contingent credits. The Bank’s Treasury segment incorporates deposits in banks and all of the Bank’s trading assets, securities available-for-sale and held-to-maturity, and the balance of the investment funds. The Bank serves a range of sectors, including oil and gas, agribusiness, food processing and manufacturing. Its products and services are categorized into three main areas: Financial Intermediation Business, Structuring and Syndications Business and Treasury.

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