Reviewing MSC Income Fund (NYSE:MSIF) & Noranda Income Fund (OTCMKTS:NNDIF)

Noranda Income Fund (OTCMKTS:NNDIF) and MSC Income Fund (NYSE:MSIF) are both miscellaneous companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Insider and Institutional Ownership

19.9% of Noranda Income Fund shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Noranda Income Fund and MSC Income Fund’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Noranda Income Fund	N/A	N/A	N/A
MSC Income Fund	N/A	N/A	N/A

Earnings and Valuation

This table compares Noranda Income Fund and MSC Income Fund”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Noranda Income Fund	N/A	N/A	N/A	$0.17	8.57
MSC Income Fund	$96.38 million	5.51	-$155,544.55	($0.00)	-3,411.03

Noranda Income Fund has higher earnings, but lower revenue than MSC Income Fund. MSC Income Fund is trading at a lower price-to-earnings ratio than Noranda Income Fund, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Noranda Income Fund and MSC Income Fund, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Noranda Income Fund	0	0	0	0	0.00
MSC Income Fund	0	3	2	1	2.67

MSC Income Fund has a consensus target price of $13.88, suggesting a potential upside of 23.30%. Given MSC Income Fund’s stronger consensus rating and higher probable upside, analysts clearly believe MSC Income Fund is more favorable than Noranda Income Fund.

Summary

MSC Income Fund beats Noranda Income Fund on 5 of the 8 factors compared between the two stocks.

About Noranda Income Fund

Noranda Income Fund (”Fund”) is an income trust whose units trade on the TSX under the symbol ”NIF.UN”. The Fund owns the electrolytic zinc processing facility and ancillary assets(”the Processing Facility”) located in Salaberry-de-Valleyfield, Québec. The Processing Facility is the second-largest zinc processing facility in North America and the largest zinc processing facility in eastern North America , where the majority of zinc customers are located. Zinc concentrate is supplied to the Processing Facility by Glencore Canada Corporation (”Glencore Canada”) under an agreement that will last until 2017. The Fund is paid a processing fee for refining the zinc, and it earns additional revenue through zinc metal premiums, by-product credits and metal recovery gains. The Fund’s primary objective is to provide stable, monthly distributions.