Bain Capital Specialty Finance, Inc. (BCSF) vs Virtus Investment Partners, Inc. (VRTS)

Bain Capital Specialty Finance, Inc. and Virtus Investment Partners, Inc. are both Asset Management companies. Virtus Investment Partners, Inc. is the larger, with a market value of $859.8M against $721.3M — 1.2× the size. Virtus Investment Partners, Inc. trades at the lower P/E: 7.3× against 11.2×. Bain Capital Specialty Finance, Inc. grew revenue faster over the last twelve months: −6.95% against −7.16%. Bain Capital Specialty Finance, Inc. has the higher net margin (24.2% vs 14.5%) and the higher return on invested capital (3.01% vs 0.00%). Both pay a dividend; Bain Capital Specialty Finance, Inc. yields more (10.7% vs 3.41%). Across the 20 metrics below, Virtus Investment Partners, Inc. leads on 11 and Bain Capital Specialty Finance, Inc. on 9.

Valuation

Metric BCSF VRTS Asset Management median
P/E 11.19 7.32 14.62
P/S 2.72 1.06 2.97
P/B 0.67 0.92 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 (1.78) 5.72
Earnings yield 8.94% 13.66% 4.53%
Free cash flow yield 18.58% (5.96%) 4.65%

Profitability

Metric BCSF VRTS Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 75.36% 15.71% 33.03%
Net margin 24.22% 14.52% 13.53%
Free cash flow margin 50.60% (6.29%) 12.44%
Return on equity 5.76% 12.99% 4.83%
Return on assets 2.37% 2.91% 1.57%
Return on invested capital 3.01% 0.00% 3.04%

Growth

Metric BCSF VRTS Asset Management median
Revenue growth (TTM) (6.95%) (7.16%) 6.97%
EPS growth (last fiscal year) (17.84%) 18.24% —
Revenue growth, 5-year CAGR 7.04% 7.15% 12.13%
Net income growth, 5-year CAGR 64.18% 11.60% 0.00%

Health

Metric BCSF VRTS Asset Management median
Debt to equity 1.39 0.44 0.42
Current ratio 7.20 10.54 1.28
Net debt to EBITDA 6.85 (12.38) 1.06

Dividend

Metric BCSF VRTS Asset Management median
Dividend yield 10.72% 3.41% 6.92%
Payout ratio 0.83 0.35 0.77

Size

Metric BCSF VRTS Asset Management median
Market cap 721.34m 859.76m 721.34m

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