New Mountain Finance (NASDAQ:NMFC – Get Free Report) and Baltic International USA (OTCMKTS:BISA – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.
Insider & Institutional Ownership
32.1% of New Mountain Finance shares are owned by institutional investors. 11.7% of New Mountain Finance shares are owned by insiders. Comparatively, 29.4% of Baltic International USA shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares New Mountain Finance and Baltic International USA”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Mountain Finance | $371.67 million | 3.12 | $113.44 million | $1.00 | 10.74 |
| Baltic International USA | N/A | N/A | -$30,000.00 | ($0.01) | -1.00 |
New Mountain Finance has higher revenue and earnings than Baltic International USA. Baltic International USA is trading at a lower price-to-earnings ratio than New Mountain Finance, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
New Mountain Finance has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Baltic International USA has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations and price targets for New Mountain Finance and Baltic International USA, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Mountain Finance | 0 | 3 | 0 | 0 | 2.00 |
| Baltic International USA | 0 | 0 | 0 | 0 | 0.00 |
New Mountain Finance currently has a consensus target price of $10.67, suggesting a potential downside of 0.68%. Given New Mountain Finance’s stronger consensus rating and higher possible upside, equities analysts clearly believe New Mountain Finance is more favorable than Baltic International USA.
Profitability
This table compares New Mountain Finance and Baltic International USA’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Mountain Finance | 29.84% | 10.57% | 4.35% |
| Baltic International USA | N/A | N/A | -806.45% |
Summary
New Mountain Finance beats Baltic International USA on 10 of the 12 factors compared between the two stocks.
About New Mountain Finance
New Mountain Finance Corporation (Nasdaq: NMFC), a business development company is a private equity / buyouts and loan fund specializes in directly investing and lending to middle market companies in defensive growth industries. The fund prefers investing in buyout and middle market companies. It also makes investments in debt securities at all levels of the capital structure including first and second lien debt, unsecured notes, and mezzanine securities. In some cases, its investments may also include equity interests. It targets energy, engineering and consulting services, specialty chemicals and materials, trading companies and distributors, commercial printing, diversified support services, education services, environmental and facilities services, office services and supplies, media, distributors, health care services, health care facilities, application software, business services, systems software, federal services, distribution and logistics, interactive home entertainment, telecommunication services, hydroelectric power generation, electric power generation by fossil fuels, electric power generation by nuclear fuels, health care technology, and security and alarm services. The fund seeks to invest in United States of America. It seeks to invest between $10 million and $125 million per transaction. The firm invests through both primary originations and open-market secondary purchases. It invests in companies with EBITDA between $10 million and $200 million. The fund seeks a majority stake in its portfolio companies.
About Baltic International USA
Baltic International USA, Inc. does not have significant operations. It intends to investigate and acquire a target company or business seeking to become a publicly held corporation. The company was incorporated in 1991 and is based in Houston, Texas.
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