Investcorp Credit Management BDC (NASDAQ:ICMB – Get Free Report) and Bain Capital Specialty Finance (NYSE:BCSF – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.
Institutional & Insider Ownership
7.8% of Investcorp Credit Management BDC shares are owned by institutional investors. 1.2% of Investcorp Credit Management BDC 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 summary of current ratings and recommmendations for Investcorp Credit Management BDC and Bain Capital Specialty Finance, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Investcorp Credit Management BDC | 0 | 0 | 0 | 0 | 0.00 |
| Bain Capital Specialty Finance | 0 | 1 | 1 | 0 | 2.50 |
Dividends
Investcorp Credit Management BDC pays an annual dividend of $0.48 per share and has a dividend yield of 17.6%. Bain Capital Specialty Finance pays an annual dividend of $1.68 per share and has a dividend yield of 11.1%. Investcorp Credit Management BDC pays out 88.9% 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 101.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Investcorp Credit Management BDC has raised its dividend for 1 consecutive years and Bain Capital Specialty Finance has raised its dividend for 4 consecutive years. Investcorp Credit Management BDC is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Investcorp Credit Management BDC and Bain Capital Specialty Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Investcorp Credit Management BDC | 38.05% | 5.54% | 2.11% |
| Bain Capital Specialty Finance | 37.90% | 11.41% | 4.92% |
Valuation & Earnings
This table compares Investcorp Credit Management BDC 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 | |
| Investcorp Credit Management BDC | $23.88 million | 1.64 | -$4.09 million | $0.54 | 5.04 |
| Bain Capital Specialty Finance | $292.65 million | 3.34 | $119.42 million | $1.66 | 9.08 |
Bain Capital Specialty Finance has higher revenue and earnings than Investcorp Credit Management BDC. Investcorp Credit Management BDC is trading at a lower price-to-earnings ratio than Bain Capital Specialty Finance, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Investcorp Credit Management BDC has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Bain Capital Specialty Finance has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.
Summary
Bain Capital Specialty Finance beats Investcorp Credit Management BDC on 11 of the 16 factors compared between the two stocks.
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.
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.
Receive News & Ratings for Investcorp Credit Management BDC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Investcorp Credit Management BDC and related companies with MarketBeat.com's FREE daily email newsletter.
