Bain Capital Specialty Finance, Inc. (BCSF) vs Burford Capital Limited (BUR)

Bain Capital Specialty Finance, Inc. and Burford Capital Limited are both Asset Management companies. Burford Capital Limited is the larger, with a market value of $797.1M against $721.3M — 1.1× the size. Burford Capital Limited has negative trailing earnings, so its P/E is not meaningful; Bain Capital Specialty Finance, Inc. trades at 11.2×. Bain Capital Specialty Finance, Inc. grew revenue faster over the last twelve months: −6.95% against −331.0%. Burford Capital Limited has the higher net margin (112.0% vs 24.2%) and the lower return on invested capital (−29.9% vs 3.01%). Both pay a dividend; Bain Capital Specialty Finance, Inc. yields more (10.7% vs 0.88%). Across the 18 metrics below, Bain Capital Specialty Finance, Inc. leads on 12 and Burford Capital Limited on 6.

Valuation

Metric BCSF BUR Asset Management median
P/E 11.19 n/m 14.62
P/S 2.72 n/m 2.97
P/B 0.67 0.54 0.94
Price to free cash flow 5.38 n/m 8.93
EV/EBITDA 18.11 n/m 10.32
EV/Sales 13.76 (1.63) 5.72
Earnings yield 8.94% (211.81%) 4.53%
Free cash flow yield 18.58% (23.17%) 4.65%

Profitability

Metric BCSF BUR Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 75.36% 99.23% 33.03%
Net margin 24.22% 111.95% 13.53%
Free cash flow margin 50.60% 12.27% 12.44%
Return on equity 5.76% (71.82%) 4.83%
Return on assets 2.37% (31.82%) 1.57%
Return on invested capital 3.01% (29.90%) 3.04%

Growth

Metric BCSF BUR Asset Management median
Revenue growth (TTM) (6.95%) (330.95%) 6.97%
EPS growth (last fiscal year) (17.84%) (57.58%) —
Revenue growth, 5-year CAGR 7.04% 2.85% 12.13%
Net income growth, 5-year CAGR 64.18% (17.64%) 0.00%

Health

Metric BCSF BUR Asset Management median
Debt to equity 1.39 1.64 0.42
Current ratio 7.20 9.56 1.28
Net debt to EBITDA 6.85 6.34 1.06

Dividend

Metric BCSF BUR Asset Management median
Dividend yield 10.72% 0.88% 6.92%
Payout ratio 0.83 0.10 0.77

Size

Metric BCSF BUR Asset Management median
Market cap 721.34m 797.09m 721.34m

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