Carbon Revolution Public (NASDAQ:CREV) & Bain Capital Specialty Finance (NYSE:BCSF) Critical Review

Bain Capital Specialty Finance (NYSE:BCSF) and Carbon Revolution Public (NASDAQ:CREV) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.

Valuation & Earnings

This table compares Bain Capital Specialty Finance and Carbon Revolution Public”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bain Capital Specialty Finance	$146.76 million	7.34	$123.38 million	$2.00	8.34
Carbon Revolution Public	$27.18 million	1.49	$170,000.00	N/A	N/A

Bain Capital Specialty Finance has higher revenue and earnings than Carbon Revolution Public.

Analyst Ratings

This is a summary of recent ratings for Bain Capital Specialty Finance and Carbon Revolution Public, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bain Capital Specialty Finance	0	1	1	0	2.50
Carbon Revolution Public	0	0	1	0	3.00

Bain Capital Specialty Finance presently has a consensus price target of $17.00, indicating a potential upside of 1.92%. Carbon Revolution Public has a consensus price target of $39.00, indicating a potential upside of 1,014.29%. Given Carbon Revolution Public’s stronger consensus rating and higher possible upside, analysts clearly believe Carbon Revolution Public is more favorable than Bain Capital Specialty Finance.

Risk and Volatility

Bain Capital Specialty Finance has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Carbon Revolution Public has a beta of 3, indicating that its share price is 200% more volatile than the S&P 500.

Profitability

This table compares Bain Capital Specialty Finance and Carbon Revolution Public’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bain Capital Specialty Finance	43.90%	12.09%	5.49%
Carbon Revolution Public	N/A	N/A	N/A

Insider and Institutional Ownership

1.2% of Carbon Revolution Public shares are owned by institutional investors. 0.6% of Bain Capital Specialty Finance shares are owned by company insiders. Comparatively, 0.2% of Carbon Revolution Public shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Bain Capital Specialty Finance beats Carbon Revolution Public on 7 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 Carbon Revolution Public

Carbon Revolution Public Limited Company manufactures and sells carbon fibre wheels to original equipment vehicle manufacturers for the automotive industry worldwide. It also provides associated engineering services; and sells tools. The company was founded in 2007 and is based in Dublin, Ireland.