Fortune Rise Acquisition (NASDAQ:FRLA – Get Free Report) and Bain Capital Specialty Finance (NYSE:BCSF – Get Free Report) are both small-cap unclassified companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.
Insider and Institutional Ownership
52.9% of Fortune Rise Acquisition shares are held by institutional investors. 1.0% of Fortune Rise Acquisition shares are held by company insiders. Comparatively, 0.6% of Bain Capital Specialty Finance shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Fortune Rise Acquisition and Bain Capital Specialty Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fortune Rise Acquisition | N/A | N/A | N/A |
| Bain Capital Specialty Finance | 43.62% | 11.90% | 5.43% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fortune Rise Acquisition | N/A | N/A | N/A | N/A | N/A |
| Bain Capital Specialty Finance | $297.79 million | 3.67 | $123.38 million | $1.99 | 8.51 |
Bain Capital Specialty Finance has higher revenue and earnings than Fortune Rise Acquisition.
Analyst Recommendations
This is a summary of recent ratings and price targets for Fortune Rise Acquisition and Bain Capital Specialty Finance, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fortune Rise Acquisition | 0 | 0 | 0 | 0 | 0.00 |
| Bain Capital Specialty Finance | 0 | 1 | 1 | 0 | 2.50 |
Bain Capital Specialty Finance has a consensus price target of $17.00, indicating a potential upside of 0.41%. Given Bain Capital Specialty Finance’s stronger consensus rating and higher possible upside, analysts plainly believe Bain Capital Specialty Finance is more favorable than Fortune Rise Acquisition.
Volatility and Risk
Fortune Rise Acquisition has a beta of 0.01, indicating that its stock price is 99% less volatile than the S&P 500. Comparatively, Bain Capital Specialty Finance has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.
Summary
Bain Capital Specialty Finance beats Fortune Rise Acquisition on 8 of the 10 factors compared between the two stocks.
About Fortune Rise Acquisition
Fortune Rise Acquisition Corporation does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company was incorporated in 2021 and is based in Clearwater, Florida.
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.
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