East Resources Acquisition (NASDAQ:ERES) vs. Monroe Capital (NASDAQ:MRCC) Critical Comparison

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

Insider & Institutional Ownership

18.8% of Monroe Capital shares are owned by institutional investors. 47.0% of East Resources Acquisition shares are owned by insiders. Comparatively, 3.6% of Monroe Capital 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.

Profitability

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

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

Earnings & Valuation

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

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

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

Analyst Ratings

This is a summary of current recommendations and price targets for East Resources Acquisition and Monroe Capital, as provided by MarketBeat.com.

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

Monroe Capital 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.

Summary

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

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.

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.