Morgan Stanley Direct Lending (NYSE:MSDL) vs. Digital Health Acquisition (NASDAQ:DHAC) Financial Comparison

Morgan Stanley Direct Lending (NYSE:MSDL) and Digital Health Acquisition (NASDAQ:DHAC) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.

Profitability

This table compares Morgan Stanley Direct Lending and Digital Health Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Morgan Stanley Direct Lending	54.89%	12.69%	6.52%
Digital Health Acquisition	N/A	N/A	N/A

Institutional and Insider Ownership

1.0% of Digital Health Acquisition shares are held by institutional investors. 0.2% of Morgan Stanley Direct Lending shares are held by company insiders. Comparatively, 6.6% of Digital Health Acquisition shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Morgan Stanley Direct Lending and Digital Health Acquisition, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Morgan Stanley Direct Lending	0	5	1	0	2.17
Digital Health Acquisition	0	0	0	0	0.00

Morgan Stanley Direct Lending currently has a consensus target price of $21.58, indicating a potential upside of 4.47%. Given Morgan Stanley Direct Lending’s stronger consensus rating and higher possible upside, analysts plainly believe Morgan Stanley Direct Lending is more favorable than Digital Health Acquisition.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Morgan Stanley Direct Lending	$367.74 million	4.97	$231.01 million	$2.55	8.10
Digital Health Acquisition	N/A	N/A	N/A	N/A	N/A

Morgan Stanley Direct Lending has higher revenue and earnings than Digital Health Acquisition.

Summary

Morgan Stanley Direct Lending beats Digital Health Acquisition on 7 of the 9 factors compared between the two stocks.

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.

About Digital Health Acquisition

Digital Health Acquisition Corp. does not have significant operations. The company focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. It intends to focus on technology and healthcare focused businesses. Digital Health Acquisition Corp. was incorporated in 2021 and is based in Boca Raton, Florida.