Comparing Bain Capital Specialty Finance (NYSE:BCSF) & Crown LNG (NASDAQ:CGBS)

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

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, Crown LNG has a beta of -0.21, meaning that its share price is 121% less volatile than the S&P 500.

Valuation & Earnings

This table compares Bain Capital Specialty Finance and Crown LNG”s 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	3.90	$123.38 million	$1.99	9.05
Crown LNG	N/A	N/A	-$6.19 million	($0.87)	-0.37

Bain Capital Specialty Finance has higher revenue and earnings than Crown LNG. Crown LNG is trading at a lower price-to-earnings ratio than Bain Capital Specialty Finance, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Bain Capital Specialty Finance and Crown LNG, 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
Crown LNG	0	0	0	0	0.00

Bain Capital Specialty Finance presently has a consensus price target of $17.50, suggesting a potential downside of 2.78%. 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 Crown LNG.

Profitability

This table compares Bain Capital Specialty Finance and Crown LNG’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%
Crown LNG	N/A	N/A	N/A

Insider and Institutional Ownership

21.9% of Crown LNG shares are owned by institutional investors. 0.6% of Bain Capital Specialty Finance shares are owned by insiders. Comparatively, 81.0% of Crown LNG shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Bain Capital Specialty Finance beats Crown LNG on 11 of the 13 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 Crown LNG

Crown LNG Holdings Limited develops and delivers tailored offshore liquefied natural gas (LNG) liquefaction and regasification terminal infrastructure solutions for harsh weather locations. The company is based in St Helier, Jersey.