Bain Capital Specialty Finance, Inc. (BCSF) vs Gladstone Investment Corporation (GAIN)

Bain Capital Specialty Finance, Inc. and Gladstone Investment Corporation are both Asset Management companies. Bain Capital Specialty Finance, Inc. is the larger, with a market value of $689.6M against $610.1M — 1.1× the size. Gladstone Investment Corporation trades at the lower P/E: 3.6× against 10.4×. Gladstone Investment Corporation grew revenue faster over the last twelve months: 9.32% against −6.95%. Gladstone Investment Corporation has the higher net margin (159.0% vs 24.2%) and the lower return on invested capital (2.36% vs 3.01%). Both pay a dividend; Bain Capital Specialty Finance, Inc. yields more (12.3% vs 6.38%). Across the 20 metrics below, Bain Capital Specialty Finance, Inc. leads on 10 and Gladstone Investment Corporation on 10.

Valuation

Metric BCSF GAIN Asset Management median
P/E 10.36 3.60 13.99
P/S 2.52 5.77 2.76
P/B 0.62 0.93 0.85
Price to free cash flow 4.98 n/m 8.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 9.65% 27.77% 4.72%
Free cash flow yield 20.07% (7.24%) 4.44%

Profitability

Metric BCSF GAIN Asset Management median
Gross margin 100.00% 61.22% 100.00%
Operating margin 75.36% 23.40% 33.42%
Net margin 24.22% 158.95% 13.37%
Free cash flow margin 50.60% (41.74%) 12.36%
Return on equity 5.76% 29.17% 4.79%
Return on assets 2.37% 14.01% 1.55%
Return on invested capital 3.01% 2.36% 2.97%

Growth

Metric BCSF GAIN Asset Management median
Revenue growth (TTM) (6.95%) 9.32% 7.42%
EPS growth (last fiscal year) (17.84%) 167.98% (6.67%)
Revenue growth, 5-year CAGR 7.04% 11.84% 12.51%
Net income growth, 5-year CAGR 64.18% 34.19% 0.00%

Health

Metric BCSF GAIN Asset Management median
Debt to equity 1.39 0.00 0.44
Current ratio 7.20 0.02 1.30
Net debt to EBITDA 6.85 0.01 1.02

Dividend

Metric BCSF GAIN Asset Management median
Dividend yield 12.28% 6.38% 6.60%
Payout ratio 1.27 0.23 0.94

Size

Metric BCSF GAIN Asset Management median
Market cap 689.55m 610.07m 694.86m

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