Analyzing Morgan Stanley Direct Lending (NYSE:MSDL) and Healthcare Capital (OTCMKTS:HCCC)

Morgan Stanley Direct Lending (NYSE:MSDL) and Healthcare Capital (OTCMKTS:HCCC) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and price targets for Morgan Stanley Direct Lending and Healthcare Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Morgan Stanley Direct Lending	0	3	3	0	2.50
Healthcare Capital	0	0	0	0	N/A

Morgan Stanley Direct Lending currently has a consensus target price of $21.58, indicating a potential downside of 3.17%. Given Morgan Stanley Direct Lending’s higher probable upside, equities research analysts plainly believe Morgan Stanley Direct Lending is more favorable than Healthcare Capital.

Profitability

This table compares Morgan Stanley Direct Lending and Healthcare Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Morgan Stanley Direct Lending	62.81%	13.08%	6.23%
Healthcare Capital	N/A	N/A	N/A

Insider and Institutional Ownership

70.5% of Healthcare Capital shares are owned by institutional investors. 0.2% of Morgan Stanley Direct Lending shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Morgan Stanley Direct Lending and Healthcare Capital’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Morgan Stanley Direct Lending	$367.74 million	5.39	$231.01 million	$3.13	7.12
Healthcare Capital	N/A	N/A	N/A	N/A	N/A

Morgan Stanley Direct Lending has higher revenue and earnings than Healthcare Capital.

Summary

Morgan Stanley Direct Lending beats Healthcare Capital on 7 of the 8 factors compared between the two stocks.

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.

About Healthcare Capital

Healthcare Capital Corp. does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company was incorporated in 2020 and is based in Wilmington, Delaware.