Head-To-Head Analysis: Bain Capital Specialty Finance (NYSE:BCSF) & Quantum FinTech Acquisition (NYSE:QFTA)

Bain Capital Specialty Finance (NYSE:BCSF) and Quantum FinTech Acquisition (NYSE:QFTA) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Risk & Volatility

Bain Capital Specialty Finance has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Quantum FinTech Acquisition has a beta of -0.3, meaning that its stock price is 130% less volatile than the S&P 500.

Institutional & Insider Ownership

30.5% of Quantum FinTech Acquisition shares are held by institutional investors. 0.6% of Bain Capital Specialty Finance shares are held by company insiders. Comparatively, 2.4% of Quantum FinTech Acquisition shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Bain Capital Specialty Finance and Quantum FinTech Acquisition”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bain Capital Specialty Finance	$297.79 million	4.02	$123.38 million	$1.99	9.31
Quantum FinTech Acquisition	N/A	N/A	$11.05 million	N/A	N/A

Bain Capital Specialty Finance has higher revenue and earnings than Quantum FinTech Acquisition.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Bain Capital Specialty Finance and Quantum FinTech Acquisition, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bain Capital Specialty Finance	0	1	1	0	2.50
Quantum FinTech Acquisition	0	0	0	0	0.00

Bain Capital Specialty Finance currently has a consensus target price of $17.50, suggesting a potential downside of 5.58%. Given Bain Capital Specialty Finance’s stronger consensus rating and higher possible upside, analysts plainly believe Bain Capital Specialty Finance is more favorable than Quantum FinTech Acquisition.

Profitability

This table compares Bain Capital Specialty Finance and Quantum FinTech Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bain Capital Specialty Finance	43.62%	11.90%	5.43%
Quantum FinTech Acquisition	N/A	-8.86%	0.75%

Summary

Bain Capital Specialty Finance beats Quantum FinTech Acquisition on 9 of the 11 factors compared between the two stocks.

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.

About Quantum FinTech Acquisition

Quantum FinTech Acquisition Corporation does not have significant operations. It intends to effect a merger, capital share exchange, asset acquisition, stock purchase, recapitalization, reorganization, or other similar business combination with one or more businesses or entities. The company was incorporated in 2020 and is based in Tampa, Florida.