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MRCC vs PROV

MRCC
Monroe Capital Corporation
BEARISH
Price
$5.08
Market Cap
$110.1M
Sector
Financial Services
AI Confidence
95%
PROV
Provident Financial Holdings, Inc.
NEUTRAL
Price
$17.04
Market Cap
$108.6M
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
MRCC
--
PROV
17.21
Forward P/E
MRCC
18.81
PROV
13.01
P/B Ratio
MRCC
0.66
PROV
0.86
P/S Ratio
MRCC
2.91
PROV
2.66
EV/EBITDA
MRCC
--
PROV
--

Profitability

Gross Margin
MRCC
100.0%
PROV
0.0%
Operating Margin
MRCC
69.02%
PROV
24.41%
Profit Margin
MRCC
-13.52%
PROV
16.18%
ROE
MRCC
-2.86%
PROV
5.15%
ROA
MRCC
3.98%
PROV
0.53%

Growth

Revenue Growth
MRCC
-41.8%
PROV
10.9%
Earnings Growth
MRCC
--
PROV
70.2%

Financial Health

Debt/Equity
MRCC
1.15
PROV
--
Current Ratio
MRCC
1.64
PROV
--
Quick Ratio
MRCC
1.64
PROV
--

Dividends

Dividend Yield
MRCC
15.43%
PROV
3.27%
Payout Ratio
MRCC
1111.11%
PROV
56.57%

AI Verdict

MRCC BEARISH

MRCC exhibits severe financial distress, highlighted by a weak Piotroski F-Score of 2/9 and a catastrophic dividend payout ratio of 1111.11%. While the stock trades at a significant discount to book value (P/B 0.66), this is a classic value trap given the negative ROE (-2.86%) and a massive YoY revenue decline of 41.80%. The combination of negative profit margins and a 0/100 technical trend suggests a continuing downward trajectory with high risk of dividend cuts.

Strengths
Trading at a significant discount to book value (P/B 0.66)
Positive Return on Assets (ROA 3.98%) despite negative ROE
High nominal dividend yield (15.43%) for high-risk income seekers
Risks
Mathematically unsustainable dividend payout ratio (1111.11%)
Severe revenue contraction (-41.80% YoY)
Weak financial health as evidenced by Piotroski F-Score of 2/9
PROV NEUTRAL

PROV presents a classic deep-value profile, trading at a significant discount to its Graham Number ($21.04) and Intrinsic Value ($29.2). While the Piotroski F-Score of 4/9 indicates stable financial health, the company is struggling with execution, having missed earnings estimates in four consecutive quarters with an average surprise of -18.75%. Strong YoY earnings growth is currently offset by a bearish technical trend, insider selling, and high geographic concentration in Southern California real estate. The stock is fundamentally undervalued but lacks a near-term catalyst for price appreciation.

Strengths
Trading below book value (P/B 0.86)
Significant discount to Graham Number and Intrinsic Value
Strong YoY earnings growth of 70.20%
Risks
High geographic concentration (64% of real estate loans in Southern California)
Consistent failure to meet earnings expectations (0/4 beats in last 4 quarters)
Bearish technical trend (10/100) and insider selling

Compare Another Pair

MRCC vs PROV: Head-to-Head Comparison

This page compares Monroe Capital Corporation (MRCC) and Provident Financial Holdings, Inc. (PROV) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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