Bain Capital Specialty Finance, Inc. (BCSF) vs MidCap Financial Investment Corporation (MFIC)

Bain Capital Specialty Finance, Inc. and MidCap Financial Investment Corporation are both Asset Management companies. Bain Capital Specialty Finance, Inc. and MidCap Financial Investment Corporation are of similar size ($731.1M and $721.3M). MidCap Financial Investment Corporation 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 −7.17%. Bain Capital Specialty Finance, Inc. has the higher net margin (24.2% vs −9.85%) and the lower return on invested capital (3.01% vs 5.78%). Both pay a dividend; MidCap Financial Investment Corporation yields more (11.1% vs 10.7%). Across the 21 metrics below, MidCap Financial Investment Corporation leads on 11 and Bain Capital Specialty Finance, Inc. on 10.

Valuation

Metric BCSF MFIC Asset Management median
P/E 11.19 n/m 14.62
P/S 2.72 2.44 2.97
P/B 0.67 0.67 0.94
Price to free cash flow 5.38 1.38 8.93
EV/EBITDA 18.11 6.54 10.32
EV/Sales 13.76 8.07 5.72
Earnings yield 8.94% (4.05%) 4.53%
Free cash flow yield 18.58% 72.49% 4.65%

Profitability

Metric BCSF MFIC Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 75.36% 86.02% 33.03%
Net margin 24.22% (9.85%) 13.53%
Free cash flow margin 50.60% 176.54% 12.44%
Return on equity 5.76% (2.39%) 4.83%
Return on assets 2.37% (0.94%) 1.57%
Return on invested capital 3.01% 5.78% 3.04%

Growth

Metric BCSF MFIC Asset Management median
Revenue growth (TTM) (6.95%) (7.17%) 6.97%
EPS growth (last fiscal year) (17.84%) (46.46%) —
Revenue growth, 5-year CAGR 7.04% 8.16% 12.13%
Net income growth, 5-year CAGR 64.18% (10.80%) 0.00%

Health

Metric BCSF MFIC Asset Management median
Debt to equity 1.39 1.58 0.42
Current ratio 7.20 3.78 1.28
Net debt to EBITDA 6.85 6.41 1.06

Dividend

Metric BCSF MFIC Asset Management median
Dividend yield 10.72% 11.11% 6.92%
Payout ratio 0.83 0.97 0.77

Size

Metric BCSF MFIC Asset Management median
Market cap 721.34m 731.06m 721.34m

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