Barings BDC (NYSE:BBDC – Get Free Report) and Vinci Partners Investments (NASDAQ:VINP – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.
Insider & Institutional Ownership
44.1% of Barings BDC shares are held by institutional investors. Comparatively, 34.1% of Vinci Partners Investments shares are held by institutional investors. 0.5% of Barings BDC shares are held by company insiders. Comparatively, 49.3% of Vinci Partners Investments shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations and price targets for Barings BDC and Vinci Partners Investments, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Barings BDC | 0 | 2 | 1 | 0 | 2.33 |
| Vinci Partners Investments | 0 | 0 | 3 | 0 | 3.00 |
Earnings and Valuation
This table compares Barings BDC and Vinci Partners Investments’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Barings BDC | $289.20 million | 3.54 | $128.00 million | $1.23 | 7.87 |
| Vinci Partners Investments | $91.03 million | 6.49 | $44.19 million | $0.81 | 13.56 |
Barings BDC has higher revenue and earnings than Vinci Partners Investments. Barings BDC is trading at a lower price-to-earnings ratio than Vinci Partners Investments, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Barings BDC and Vinci Partners Investments’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Barings BDC | 45.35% | 10.77% | 4.78% |
| Vinci Partners Investments | 50.51% | 17.86% | 12.07% |
Risk and Volatility
Barings BDC has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Vinci Partners Investments has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500.
Dividends
Barings BDC pays an annual dividend of $1.04 per share and has a dividend yield of 10.7%. Vinci Partners Investments pays an annual dividend of $0.68 per share and has a dividend yield of 6.2%. Barings BDC pays out 84.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vinci Partners Investments pays out 84.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Summary
Vinci Partners Investments beats Barings BDC on 10 of the 16 factors compared between the two stocks.
About Barings BDC
Barings BDC, Inc. is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. It seeks to invest primarily in senior secured loans, first lien debt, unitranche, second lien debt, subordinated debt, equity co-investments and senior secured private debt investments in private middle-market companies that operate across a wide range of industries. It specializes in mezzanine, leveraged buyouts, management buyouts, ESOPs, change of control transactions, acquisition financings, growth financing, and recapitalizations in lower middle market, mature, and later stage companies. It invests in manufacturing and distribution; business services and technology; transportation and logistics; consumer product and services. It invests in United States. It invests in companies with EBITDA of $10 million to $75 million, typically in private equity sponsor backed.
About Vinci Partners Investments
Vinci Partners Investments Ltd. operates as an asset management firm in Brazil. The company focuses on private markets, liquid strategies, investment products and solutions, and retirement services. It offers private equity, infrastructure, real estate, credit, special situations, equities, hedge funds, and investment products and solutions comprising portfolio and management services. In addition, the company financial and strategic advisory services, focusing on IPO advisory and mergers and acquisition transactions to entrepreneurs, corporate senior management teams, and boards of directors. Vinci Partners Investments Ltd. was founded in 2009 and is based in Rio de Janeiro, Brazil.
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