Analyzing Investcorp Credit Management BDC (NASDAQ:ICMB) and Hamilton Lane (NASDAQ:HLNE)

Hamilton Lane (NASDAQ:HLNE) and Investcorp Credit Management BDC (NASDAQ:ICMB) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Volatility & Risk

Hamilton Lane has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Investcorp Credit Management BDC has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Earnings and Valuation

This table compares Hamilton Lane and Investcorp Credit Management BDC”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hamilton Lane	$758.99 million	6.22	$249.18 million	$6.56	12.95
Investcorp Credit Management BDC	$17.40 million	0.71	-$8.85 million	($1.42)	-0.60

Hamilton Lane has higher revenue and earnings than Investcorp Credit Management BDC. Investcorp Credit Management BDC is trading at a lower price-to-earnings ratio than Hamilton Lane, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Hamilton Lane and Investcorp Credit Management BDC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hamilton Lane	0	2	6	1	2.89
Investcorp Credit Management BDC	1	0	0	0	1.00

Hamilton Lane presently has a consensus target price of $131.57, suggesting a potential upside of 54.86%. Given Hamilton Lane’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Hamilton Lane is more favorable than Investcorp Credit Management BDC.

Profitability

This table compares Hamilton Lane and Investcorp Credit Management BDC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hamilton Lane	32.14%	25.10%	15.75%
Investcorp Credit Management BDC	-134.21%	0.86%	0.28%

Insider and Institutional Ownership

97.4% of Hamilton Lane shares are held by institutional investors. Comparatively, 7.8% of Investcorp Credit Management BDC shares are held by institutional investors. 24.0% of Hamilton Lane shares are held by insiders. Comparatively, 1.3% of Investcorp Credit Management BDC shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Hamilton Lane beats Investcorp Credit Management BDC on 15 of the 15 factors compared between the two stocks.

About Hamilton Lane

Hamilton Lane Incorporated is a private equity firm specializing in early venture, emerging growth, turnaround, middle market, mature, mid-venture, bridge, buyout, distressed/vulture, loan, mezzanine in growth capital companies. It prefers to invest in energy, industrials, consumer discretionary, health care, real estate, information technology, utilities, and consumer services. The firm prefers to invest in Africa/Middle East, Asia/Pacific, Europe, Latin America and Caribbean, United States of America, and Canada. The firm prefers to invest between $1 million and $100 million. It prefers to take majority stake. Hamilton Lane Incorporated was founded in 1991 and is based in Conshohocken, Pennsylvania with additional offices across Europe, North America, Asia Pacific and the Middle East.

About Investcorp Credit Management BDC

Investcorp Credit Management BDC, Inc. is a business development company specializing in loan, mezzanine, middle market, growth capital, acquisitions, market/product expansion, organic growth, refinancings and recapitalization investments. It also selectively invests in mezzanine loans/structured equity and in the equity of portfolio companies through warrants and other instruments, in most cases taking such upside participation interests as part of a broader investment relationship. The fund typically invests in United States and Europe. Within United States, the fund seeks to invest in Midatlantic, Midwest, Northeast, Southeast, and West Coast regions. The fund primarily invests in cable and satellites; consumer services; healthcare equipment and services; industrials; information technology; telecommunication services; and utilities sectors. The fund seeks to invest between $5 million to $25 million in companies that have annual revenues of at least $50 million with EBITDA at least $15 million.