Morgan Stanley Direct Lending (MSDL) versus The Competition Head-To-Head Analysis

Morgan Stanley Direct Lending (NYSE:MSDL) is one of 672 publicly-traded companies in the “Holding & other investment offices” industry, but how does it weigh in compared to its competitors? We will compare Morgan Stanley Direct Lending to similar companies based on the strength of its profitability, valuation, institutional ownership, risk, dividends, analyst recommendations and earnings.

Profitability

This table compares Morgan Stanley Direct Lending and its competitors’ 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%
Morgan Stanley Direct Lending Competitors	-34.70%	-44.58%	0.00%

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 10.0% and pay out 137.5% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Morgan Stanley Direct Lending and its competitors, 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
Morgan Stanley Direct Lending Competitors	122	568	873	14	2.49

Morgan Stanley Direct Lending presently has a consensus target price of $21.58, suggesting a potential upside of 1.90%. As a group, “Holding & other investment offices” companies have a potential upside of 79.96%. Given Morgan Stanley Direct Lending’s competitors higher probable upside, analysts plainly believe Morgan Stanley Direct Lending has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Morgan Stanley Direct Lending and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Morgan Stanley Direct Lending	$257.26 million	$231.01 million	6.77
Morgan Stanley Direct Lending Competitors	$1.12 billion	$43.31 million	55.56

Morgan Stanley Direct Lending’s competitors have higher revenue, but lower earnings than Morgan Stanley Direct Lending. Morgan Stanley Direct Lending is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

53.6% of shares of all “Holding & other investment offices” companies are owned by institutional investors. 25.4% of shares of all “Holding & other investment offices” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Morgan Stanley Direct Lending competitors 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.