Contrast between MDC (NYSE:MDC) and Second Street Capital (OTCMKTS:CTON)


MDC (NYSE:MDC – Get Rating) and Second Street Capital (OTCMKTS:CTON – Get Rating) are both construction companies, but which is the best investment? We’ll compare the two companies based on earnings strength, risk, profitability, valuation, dividends, institutional ownership, and analyst recommendations.

Insider and Institutional Ownership

83.9% of MDC shares are held by institutional investors. 24.2% of MDC shares are held by insiders. By comparison, 71.9% of Second Street Capital’s stock is held by insiders. Strong institutional ownership indicates that hedge funds, large money managers, and endowments believe a company is poised for long-term growth.

Profitability

This table compares the net margins, return on equity and return on assets of MDC and Second Street Capital.

Net margins Return on equity return on assets
MDC 11.24% 24.22% 12.64%
Second Street Capital N / A N / A N / A

Benefits and evaluation

This chart compares revenue, earnings per share, and valuation of MDC and Second Street Capital.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
MDC $5.25 billion 0.43 $573.66 million $8.33 3.83
Second Street Capital N / A N / A N / A N / A N / A

MDC has higher revenue and profits than Second Street Capital.

Volatility and risk

MDC has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Second Street Capital has a beta of 20.54, suggesting that its stock price is 1,954% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of the current ratings and recommendations for MDC and Second Street Capital, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
MDC 1 2 0 1 2.25
Second Street Capital 0 0 0 0 N / A

MDC currently has a consensus price target of $47.67, indicating a potential upside of 49.38%. Given MDC’s likely higher upside, equity research analysts clearly believe that MDC is more favorable than Second Street Capital.

Summary

MDC beats Second Street Capital on 7 of the 9 factors compared between the two stocks.

About MDC (Get an assessment)

MDC Holdings, Inc., through its subsidiaries, is engaged in residential construction and financial services. Its home construction business includes the purchase of finished land or the development of land for construction and sale primarily of single family detached homes to first time home buyers and first movers under the Richmond American Homes name. The Company conducts homebuilding operations in Arizona, California, Nevada, New Mexico, Oregon, Texas, Washington, Colorado, Idaho, Utah, Maryland, Pennsylvania, Virginia, in Tennessee and Florida. Its financial services business includes providing mortgage loans primarily for home buyers; provide insurance coverage primarily to its residential construction subsidiaries and contractors for homes sold by its residential construction subsidiaries and for work performed on completed subdivisions; act as a reinsurer on claims; sale of third party personal property and casualty insurance products to home buyers; and provides title agency services to homebuilding affiliates and clients in Colorado, Florida, Maryland, Nevada and Virginia. MDC Holdings, Inc. was founded in 1972 and is headquartered in Denver, Colorado.

About Second Street Capital (Get an assessment)

Second Street Capital, Inc. operates as a specialty finance company in the United States. It provides asset-based loans to small and medium enterprises, export trading companies and small and medium-sized home builders, developers and investors. The company offers mortgage and asset-based loans with income participation, as well as preferred equity investments and senior secured loans. It also makes and manages investments in qualified real estate assets as principal and on behalf of institutional clients. The company was formerly known as Calton, Inc. and changed its name to Second Street Capital, Inc. in November 2011. Second Street Capital, Inc. was founded in 1969 and is headquartered in Fort Lauderdale, Utah. Florida.



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