Vinci Compass Investments (NASDAQ:VINP – Get Free Report) and Bain Capital Specialty Finance (NYSE:BCSF – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Profitability
This table compares Vinci Compass Investments and Bain Capital Specialty Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vinci Compass Investments | 23.77% | 12.65% | 6.67% |
| Bain Capital Specialty Finance | 24.22% | 10.40% | 4.33% |
Volatility & Risk
Vinci Compass Investments has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500. Comparatively, Bain Capital Specialty Finance has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.
Institutional & Insider Ownership
34.1% of Vinci Compass Investments shares are owned by institutional investors. 49.3% of Vinci Compass Investments shares are owned by company insiders. Comparatively, 0.6% of Bain Capital Specialty Finance shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Vinci Compass Investments and Bain Capital Specialty Finance, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vinci Compass Investments | 1 | 1 | 1 | 0 | 2.00 |
| Bain Capital Specialty Finance | 0 | 4 | 0 | 0 | 2.00 |
Vinci Compass Investments currently has a consensus price target of $14.00, suggesting a potential upside of 24.44%. Bain Capital Specialty Finance has a consensus price target of $12.60, suggesting a potential upside of 24.44%. Given Vinci Compass Investments’ higher probable upside, research analysts plainly believe Vinci Compass Investments is more favorable than Bain Capital Specialty Finance.
Valuation and Earnings
This table compares Vinci Compass Investments and Bain Capital Specialty Finance”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vinci Compass Investments | $175.01 million | 4.21 | $38.97 million | $0.70 | 16.07 |
| Bain Capital Specialty Finance | $78.39 million | 8.38 | $98.76 million | $0.99 | 10.23 |
Bain Capital Specialty Finance has lower revenue, but higher earnings than Vinci Compass Investments. Bain Capital Specialty Finance is trading at a lower price-to-earnings ratio than Vinci Compass Investments, indicating that it is currently the more affordable of the two stocks.
Dividends
Vinci Compass Investments pays an annual dividend of $0.68 per share and has a dividend yield of 6.0%. Bain Capital Specialty Finance pays an annual dividend of $1.68 per share and has a dividend yield of 16.6%. Vinci Compass Investments pays out 97.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bain Capital Specialty Finance pays out 169.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bain Capital Specialty Finance has increased its dividend for 4 consecutive years. Bain Capital Specialty Finance is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Vinci Compass Investments beats Bain Capital Specialty Finance on 9 of the 16 factors compared between the two stocks.
About Vinci Compass Investments
Vinci Partners Investments Ltd. operates as an asset management firm in Brazil. The company focuses on private markets, liquid strategies, investment products and solutions, and retirement services. It offers private equity, infrastructure, real estate, credit, special situations, equities, hedge funds, and investment products and solutions comprising portfolio and management services. In addition, the company financial and strategic advisory services, focusing on IPO advisory and mergers and acquisition transactions to entrepreneurs, corporate senior management teams, and boards of directors. Vinci Partners Investments Ltd. was founded in 2009 and is based in Rio de Janeiro, Brazil.
About Bain Capital Specialty Finance
Bain Capital Specialty Finance, Inc. is business development company 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.
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