Morgan Stanley Direct Lending (NYSE:MSDL – Get Free Report) is one of 670 publicly-traded companies in the “Holding & other investment offices” industry, but how does it compare to its peers? We will compare Morgan Stanley Direct Lending to related businesses based on the strength of its dividends, profitability, earnings, risk, valuation, analyst recommendations and institutional ownership.
Dividends
Morgan Stanley Direct Lending pays an annual dividend of $2.00 per share and has a dividend yield of 9.4%. 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 8.1% and pay out 71.3% of their earnings in the form of a dividend. Morgan Stanley Direct Lending is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Morgan Stanley Direct Lending and its peers revenue, earnings per share and valuation.
Gross Revenue | Net Income | Price/Earnings Ratio | |
Morgan Stanley Direct Lending | $367.74 million | $231.01 million | 6.78 |
Morgan Stanley Direct Lending Competitors | $979.29 million | -$53.08 million | 54.33 |
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% | 11.51% | 5.99% |
Morgan Stanley Direct Lending Competitors | -34.70% | -44.81% | -0.04% |
Analyst Ratings
This is a summary of current recommendations for Morgan Stanley Direct Lending and its peers, as reported 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 | 112 | 558 | 875 | 14 | 2.51 |
Morgan Stanley Direct Lending currently has a consensus target price of $21.58, indicating a potential upside of 1.66%. As a group, “Holding & other investment offices” companies have a potential upside of 90.72%. Given Morgan Stanley Direct Lending’s peers stronger consensus rating and higher possible upside, analysts plainly believe Morgan Stanley Direct Lending has less favorable growth aspects than its peers.
Insider & Institutional Ownership
53.8% of shares of all “Holding & other investment offices” companies are owned by institutional investors. 25.1% of shares of all “Holding & other investment offices” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
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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