Morgan Stanley Direct Lending (NYSE:MSDL) versus Digital Health Acquisition (NASDAQ:DHAC) Head-To-Head Analysis

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

Institutional & Insider Ownership

1.0% of Digital Health Acquisition shares are held by institutional investors. 6.6% of Digital Health Acquisition 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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Digital Health Acquisition and Morgan Stanley Direct Lending”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digital Health Acquisition	N/A	N/A	N/A	N/A	N/A
Morgan Stanley Direct Lending	$367.74 million	4.95	$231.01 million	$2.55	8.06

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Digital Health Acquisition and Morgan Stanley Direct Lending, as reported by MarketBeat.com.

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

Morgan Stanley Direct Lending has a consensus price target of $21.58, indicating a potential upside of 4.98%. 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.

Profitability

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

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

Summary

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

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.

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.