Bain Capital Specialty Finance (NYSE:BCSF) and Sandston (OTCMKTS:SDON) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.
This table compares Bain Capital Specialty Finance and Sandston’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bain Capital Specialty Finance||44.85%||7.23%||4.02%|
Insider and Institutional Ownership
10.6% of Bain Capital Specialty Finance shares are owned by institutional investors. 0.2% of Bain Capital Specialty Finance shares are owned by insiders. Comparatively, 43.2% of Sandston shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Bain Capital Specialty Finance and Sandston, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bain Capital Specialty Finance||0||2||3||0||2.60|
Bain Capital Specialty Finance presently has a consensus price target of $20.25, indicating a potential upside of 6.69%. Given Bain Capital Specialty Finance’s higher probable upside, equities analysts clearly believe Bain Capital Specialty Finance is more favorable than Sandston.
Bain Capital Specialty Finance pays an annual dividend of $1.64 per share and has a dividend yield of 8.6%. Sandston does not pay a dividend. Bain Capital Specialty Finance pays out 113.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Earnings & Valuation
This table compares Bain Capital Specialty Finance and Sandston’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bain Capital Specialty Finance||$99.29 million||9.87||$26.65 million||$1.45||13.09|
Bain Capital Specialty Finance has higher revenue and earnings than Sandston.
Bain Capital Specialty Finance beats Sandston on 9 of the 11 factors compared between the two stocks.
About Bain Capital Specialty Finance
Bain Capital Specialty Finance, Inc. operates as a business development company (BDC) specializing in direct loans to middle-market companies. The fund seeks to invest in senior investments with a first or second lien on collateral, senior first lien, stretch senior, senior second lien, unitranche, mezzanine debt, junior securities, other junior investments, and secondary purchases of assets or portfolios that primarily consist of middle-market corporate debt. It typically invests in companies with EBITDA between $10 million and $150 million.
Sandston Corporation does not have significant operations. The company intends to acquire and/or invest in and operate strategically positioned companies in multiple industry groups. Previously, it was involved in the design, manufacture, and marketing of environmentally ruggedized computers and computer displays; design, development, and marketing of software for use in factory automation and control, and in test and measurement environments; and provision of application engineering support to customers of its own and third parties' products. The company was formerly known as Nematron Corporation and changed its name to Sandston Corporation in April 2004. Sandston Corporation was founded in 1983 and is based in Traverse City, Michigan. Sandston Corporation is a subsidiary of Dorman Industries, LLC.
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