Contrasting Bain Capital Specialty Finance (NYSE:BCSF) and Goldenstone Acquisition (NASDAQ:GDST)

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

Institutional & Insider Ownership

72.1% of Goldenstone Acquisition shares are owned by institutional investors. 0.6% of Bain Capital Specialty Finance shares are owned by company insiders. Comparatively, 21.0% of Goldenstone Acquisition shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

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

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

Bain Capital Specialty Finance presently has a consensus target price of $17.50, suggesting a potential downside of 4.48%. Given Bain Capital Specialty Finance’s stronger consensus rating and higher probable upside, research analysts plainly believe Bain Capital Specialty Finance is more favorable than Goldenstone Acquisition.

Risk & Volatility

Bain Capital Specialty Finance has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Goldenstone Acquisition has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500.

Valuation and Earnings

This table compares Bain Capital Specialty Finance and Goldenstone Acquisition”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	$297.79 million	3.97	$123.38 million	$1.99	9.21
Goldenstone Acquisition	N/A	N/A	N/A	N/A	N/A

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

Profitability

This table compares Bain Capital Specialty Finance and Goldenstone 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%
Goldenstone Acquisition	N/A	N/A	N/A

Summary

Bain Capital Specialty Finance beats Goldenstone Acquisition on 8 of the 10 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 Goldenstone Acquisition

Goldenstone Acquisition Limited does not have significant operations. It intends to enter into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization, or other business combination with one or more businesses or entities. The company was incorporated in 2020 and is based in Aurora, Illinois.