Sutter Rock Capital (NASDAQ:SSSS) and Morgan Stanley India Investment Fund (NYSE:IIF) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sutter Rock Capital and Morgan Stanley India Investment Fund, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sutter Rock Capital 0 0 2 0 3.00
Morgan Stanley India Investment Fund 0 0 0 0 N/A

Sutter Rock Capital currently has a consensus target price of $15.50, indicating a potential upside of 21.28%. Given Sutter Rock Capital’s higher possible upside, research analysts clearly believe Sutter Rock Capital is more favorable than Morgan Stanley India Investment Fund.

Profitability

This table compares Sutter Rock Capital and Morgan Stanley India Investment Fund’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sutter Rock Capital 440.27% -7.67% -5.11%
Morgan Stanley India Investment Fund N/A N/A N/A

Earnings & Valuation

This table compares Sutter Rock Capital and Morgan Stanley India Investment Fund’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sutter Rock Capital $1.50 million 142.75 $23.95 million ($0.49) -26.08
Morgan Stanley India Investment Fund N/A N/A N/A N/A N/A

Sutter Rock Capital has higher revenue and earnings than Morgan Stanley India Investment Fund.

Institutional and Insider Ownership

16.1% of Sutter Rock Capital shares are held by institutional investors. Comparatively, 50.6% of Morgan Stanley India Investment Fund shares are held by institutional investors. 1.2% of Sutter Rock Capital shares are held by company 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.

Summary

Sutter Rock Capital beats Morgan Stanley India Investment Fund on 5 of the 8 factors compared between the two stocks.

Sutter Rock Capital Company Profile

Sutter Rock Capital Corp. is specializing in growth capital, B round and beyond, emerging growth, and pre-IPO investments in late stage venture-backed private companies. It makes direct (primary rounds) investments in companies and also makes secondary direct investments. The fund may also invest in select publicly-traded equity securities of companies that otherwise meet its investment criteria. It seeks to invest in the technology subsectors of social/mobile marketplaces, sustainability, cloud computing and big data, social media, mobile computing and applications, software as a service, Internet commerce, green technology and education technology. The fund invests in the form of non-controlling equity and equity-related investments, including common stock, warrants, preferred stock and similar forms of senior equity, which may or may not be convertible into a portfolio company's common equity, and convertible debt securities with a significant equity component. It will invest in companies based in United States. It generally invests in companies with a market value of over $100 million. Typically, the firm exits its position within 18 months of going public, or 12 months after any relevant lock-up has expired.

Morgan Stanley India Investment Fund Company Profile

Morgan Stanley India Investment Fund, Inc. is a closed ended equity mutual fund launched and managed by Morgan Stanley Investment Management Inc. The fund is co-managed by Morgan Stanley Investment Management Company. It invests in the public equity markets of India. The fund invests in stocks of companies operating across diversified sectors. It benchmarks the performance of its portfolio against the U.S. dollar adjusted BSE National Index. Morgan Stanley India Investment Fund, Inc. was formed on December 22, 1993 and is domiciled in the United States.

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