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

Earnings & Valuation

This table compares Gores Metropoulos and Bain Capital Specialty Finance’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gores Metropoulos N/A N/A $5.45 million N/A N/A
Bain Capital Specialty Finance $197.95 million 3.25 $98.08 million $1.64 6.07

Bain Capital Specialty Finance has higher revenue and earnings than Gores Metropoulos.

Risk and Volatility

Gores Metropoulos has a beta of 0.12, indicating that its stock price is 88% less volatile than the S&P 500. Comparatively, Bain Capital Specialty Finance has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Gores Metropoulos and Bain Capital Specialty Finance, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gores Metropoulos 0 0 1 0 3.00
Bain Capital Specialty Finance 1 6 1 0 2.00

Gores Metropoulos presently has a consensus price target of $16.00, suggesting a potential upside of 51.37%. Bain Capital Specialty Finance has a consensus price target of $12.14, suggesting a potential upside of 21.92%. Given Gores Metropoulos’ stronger consensus rating and higher possible upside, equities analysts plainly believe Gores Metropoulos is more favorable than Bain Capital Specialty Finance.

Profitability

This table compares Gores Metropoulos and Bain Capital Specialty Finance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gores Metropoulos N/A 58.66% 0.82%
Bain Capital Specialty Finance -20.85% 8.61% 3.21%

Insider & Institutional Ownership

65.0% of Gores Metropoulos shares are held by institutional investors. Comparatively, 53.0% of Bain Capital Specialty Finance shares are held by institutional investors. 0.4% of Bain Capital Specialty Finance shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

About Gores Metropoulos

Gores Metropoulos, Inc. does not have signification operations. It intends to acquire assets and businesses through a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or business combination. The company was founded in 2018 and is headquartered in Beverly Hills, California.

About Bain Capital Specialty Finance

Bain Capital Specialty Finance, Inc. operates as a business development company (BDC) 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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