Analyzing Gores Metropoulos (NASDAQ:GMHI) & Bain Capital Specialty Finance (NASDAQ:BCSF)

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Gores Metropoulos and Bain Capital Specialty Finance, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gores Metropoulos 0 0 1 0 3.00
Bain Capital Specialty Finance 1 6 1 0 2.00

Gores Metropoulos presently has a consensus target price of $16.00, suggesting a potential upside of 51.37%. Bain Capital Specialty Finance has a consensus target price of $12.14, suggesting a potential upside of 21.92%. Given Gores Metropoulos’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Gores Metropoulos is more favorable than Bain Capital Specialty Finance.

Risk and Volatility

Gores Metropoulos has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500. Comparatively, Bain Capital Specialty Finance has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.

Profitability

This table compares Gores Metropoulos and Bain Capital Specialty Finance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gores Metropoulos N/A 58.66% 0.82%
Bain Capital Specialty Finance -20.85% 8.61% 3.21%

Insider and Institutional Ownership

65.0% of Gores Metropoulos shares are owned by institutional investors. Comparatively, 53.0% of Bain Capital Specialty Finance shares are owned by institutional investors. 0.4% of Bain Capital Specialty Finance shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Gores Metropoulos and Bain Capital Specialty Finance’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gores Metropoulos N/A N/A $5.45 million N/A N/A
Bain Capital Specialty Finance $197.95 million 3.25 $98.08 million $1.64 6.07

Bain Capital Specialty Finance has higher revenue and earnings than Gores Metropoulos.

About Gores Metropoulos

Gores Metropoulos, Inc. does not have signification operations. It intends to acquire assets and businesses through a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or business combination. The company was founded in 2018 and is headquartered in Beverly Hills, California.

About Bain Capital Specialty Finance

Bain Capital Specialty Finance, Inc. operates as a business development company (BDC) 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.

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