Binah Capital Group (NASDAQ:BCG – Get Free Report) and Saratoga Investment (NYSE:SAR – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
Profitability
This table compares Binah Capital Group and Saratoga Investment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Binah Capital Group | 2.17% | 195.38% | 5.95% |
| Saratoga Investment | -3.35% | 8.66% | 2.78% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for Binah Capital Group and Saratoga Investment, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Binah Capital Group | 1 | 0 | 0 | 0 | 1.00 |
| Saratoga Investment | 1 | 4 | 0 | 0 | 1.80 |
Saratoga Investment has a consensus target price of $19.67, suggesting a potential upside of 44.40%. Given Saratoga Investment’s stronger consensus rating and higher possible upside, analysts clearly believe Saratoga Investment is more favorable than Binah Capital Group.
Institutional & Insider Ownership
5.0% of Binah Capital Group shares are owned by institutional investors. Comparatively, 19.1% of Saratoga Investment shares are owned by institutional investors. 7.8% of Binah Capital Group shares are owned by insiders. Comparatively, 10.6% of Saratoga Investment 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 Binah Capital Group and Saratoga Investment”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Binah Capital Group | $187.14 million | 0.10 | $2.31 million | $0.18 | 6.00 |
| Saratoga Investment | $125.71 million | 1.69 | $36.60 million | ($0.25) | -54.48 |
Saratoga Investment has lower revenue, but higher earnings than Binah Capital Group. Saratoga Investment is trading at a lower price-to-earnings ratio than Binah Capital Group, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Binah Capital Group has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, Saratoga Investment has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.
Summary
Saratoga Investment beats Binah Capital Group on 7 of the 13 factors compared between the two stocks.
About Binah Capital Group
Binah Capital Group, Inc., together with its subsidiaries, operates in the wealth management industry. The company provides access to stock, bond, exchange-traded fund, and options execution services; and research, compliance, supervision, and accounting and related services for financial advisors. It also offers mutual funds and insurance products, as well as alternative investments, such as non-traded real estate investment trusts, unit trusts, and fixed and variable annuities. The company was founded in 2016 and is headquartered in Albany, New York. Binah Capital Group, Inc. operates as a subsidiary of MHC Securities, LLC.
About Saratoga Investment
Saratoga Investment Corp. is a business development company specializing in leveraged and management buyouts, acquisition financings, growth financings, recapitalization, debt refinancing, and transitional financing transactions at the lower end of middle market companies. It structures its investments as debt and equity by investing through first and second lien loans, mezzanine debt, co-investments, select high yield bonds, senior secured bonds, unsecured bonds, and preferred and common equity. The firm prefers to invest in aerospace, automotive aftermarket and services, business products and services, consumer products and services, education, environmental services, industrial services, financial services, food and beverage, healthcare products and services, logistics, distribution, manufacturing, restaurants services, food services, software services, technology services, specialty chemical, media and telecommunications. It seeks to invest in the United States. The firm primarily invests $5 million to $50 million in companies having EBITDA of $2 million or greater and revenues of $8 million to $250 million. The firm prefer to take a majority stake. It invests through direct lending as well as participation in loan syndicates. The firm was formerly known as GSC Investment Corp. Saratoga Investment Corp. was formed on 2007 and is based in New York, New York with an additional office in Florham Park, New Jersey.
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