Bain Capital Specialty Finance (NYSE:BCSF) and Infrastructure and Energy Alternatives (NASDAQ:IEA) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.
Valuation and Earnings
This table compares Bain Capital Specialty Finance and Infrastructure and Energy Alternatives' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Bain Capital Specialty Finance | $197.95 million | 5.11 | $98.08 million | $1.64 | 9.56 |
Infrastructure and Energy Alternatives | $1.46 billion | 0.20 | $6.23 million | $0.50 | 24.88 |
Bain Capital Specialty Finance has higher earnings, but lower revenue than Infrastructure and Energy Alternatives. Bain Capital Specialty Finance is trading at a lower price-to-earnings ratio than Infrastructure and Energy Alternatives, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Bain Capital Specialty Finance and Infrastructure and Energy Alternatives' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Bain Capital Specialty Finance | -4.91% | 8.56% | 3.25% |
Infrastructure and Energy Alternatives | 0.70% | -12.99% | 1.74% |
Institutional and Insider Ownership
54.6% of Bain Capital Specialty Finance shares are owned by institutional investors. Comparatively, 21.7% of Infrastructure and Energy Alternatives shares are owned by institutional investors. 0.4% of Bain Capital Specialty Finance shares are owned by company insiders. Comparatively, 2.7% of Infrastructure and Energy Alternatives shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Bain Capital Specialty Finance has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, Infrastructure and Energy Alternatives has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations for Bain Capital Specialty Finance and Infrastructure and Energy Alternatives, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Bain Capital Specialty Finance | 0 | 3 | 1 | 0 | 2.25 |
Infrastructure and Energy Alternatives | 0 | 0 | 1 | 0 | 3.00 |
Bain Capital Specialty Finance presently has a consensus price target of $13.3750, suggesting a potential downside of 14.70%. Infrastructure and Energy Alternatives has a consensus price target of $13.00, suggesting a potential upside of 4.50%. Given Infrastructure and Energy Alternatives' stronger consensus rating and higher probable upside, analysts clearly believe Infrastructure and Energy Alternatives is more favorable than Bain Capital Specialty Finance.
Summary
Infrastructure and Energy Alternatives beats Bain Capital Specialty Finance on 7 of the 13 factors compared between the two stocks.