Critical Survey: Morgan Stanley Direct Lending (NYSE:MSDL) vs. Globalink Investment (NASDAQ:GLLI)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Globalink Investment	N/A	-1.76%	0.38%
Morgan Stanley Direct Lending	60.60%	12.57%	6.36%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Globalink Investment and Morgan Stanley Direct Lending, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Globalink Investment	0	0	0	0	N/A
Morgan Stanley Direct Lending	0	5	1	0	2.17

Morgan Stanley Direct Lending has a consensus target price of $21.42, suggesting a potential upside of 6.39%. Given Morgan Stanley Direct Lending’s higher possible upside, analysts plainly believe Morgan Stanley Direct Lending is more favorable than Globalink Investment.

Earnings & Valuation

This table compares Globalink Investment and Morgan Stanley Direct Lending”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Globalink Investment	N/A	N/A	$1.32 million	($0.16)	-70.71
Morgan Stanley Direct Lending	$275.66 million	6.53	$231.01 million	$3.10	6.49

Morgan Stanley Direct Lending has higher revenue and earnings than Globalink Investment. Globalink Investment is trading at a lower price-to-earnings ratio than Morgan Stanley Direct Lending, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

27.9% of Globalink Investment shares are held by institutional investors. 0.4% of Globalink Investment shares are held by company insiders. Comparatively, 0.2% of Morgan Stanley Direct Lending shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Morgan Stanley Direct Lending beats Globalink Investment on 9 of the 11 factors compared between the two stocks.

About Globalink Investment

Globalink Investment Inc. does not have significant operations. The company focuses on effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. It intends to identify and acquire businesses in the medical technology and green energy sectors in North America, Europe, Southeast Asia, and Asia excluding China, Hong Kong, and Macau. Globalink Investment Inc. was incorporated in 2021 and is based in Newark, Delaware.

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.