Monroe Capital (NASDAQ:MRCC) versus East Resources Acquisition (NASDAQ:ERES) Head-To-Head Survey

Monroe Capital (NASDAQ:MRCC – Get Rating) and East Resources Acquisition (NASDAQ:ERES – Get Rating) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Profitability

This table compares Monroe Capital and East Resources Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Monroe Capital	-0.45%	10.52%	4.31%
East Resources Acquisition	N/A	-14.23%	-0.29%

Earnings & Valuation

This table compares Monroe Capital and East Resources Acquisition’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Monroe Capital	$56.57 million	2.84	-$2.79 million	N/A	N/A
East Resources Acquisition	N/A	N/A	-$640,000.00	N/A	N/A

East Resources Acquisition has lower revenue, but higher earnings than Monroe Capital.

Analyst Ratings

This is a summary of current recommendations for Monroe Capital and East Resources Acquisition, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Monroe Capital	0	2	0	0	2.00
East Resources Acquisition	0	0	0	0	N/A

Monroe Capital currently has a consensus target price of $8.00, suggesting a potential upside of 7.82%. Given Monroe Capital’s higher probable upside, analysts clearly believe Monroe Capital is more favorable than East Resources Acquisition.

Institutional and Insider Ownership

18.8% of Monroe Capital shares are held by institutional investors. 3.6% of Monroe Capital shares are held by company insiders. Comparatively, 47.0% of East Resources Acquisition shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Monroe Capital beats East Resources Acquisition on 5 of the 8 factors compared between the two stocks.

About Monroe Capital

(Get Rating)

Monroe Capital Corp. is an externally managed, closed-end, non-diversified management investment company, which engages in the provision of financial solutions. Its investment objective is to maximize the total return to our stockholders in the form of current income and capital appreciation. The company was founded on February 9, 2011 and is headquartered in Chicago, IL.

About East Resources Acquisition

(Get Rating)

East Resources Acquisition Company does not have significant operations. The company focuses on effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. It intends to identify business opportunities in the field of energy in North America. The company was incorporated in 2020 and is headquartered in Boca Raton, Florida.