Head-To-Head Analysis: HCM Acquisition (NASDAQ:HCMA) vs. Bain Capital Specialty Finance (NYSE:BCSF)

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

Risk & Volatility

HCM Acquisition has a beta of -0.27, suggesting that its stock price is 127% less volatile than the S&P 500. Comparatively, Bain Capital Specialty Finance has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Valuation & Earnings

This table compares HCM Acquisition and Bain Capital Specialty Finance”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HCM Acquisition	N/A	N/A	N/A	N/A	N/A
Bain Capital Specialty Finance	$297.79 million	3.71	$123.38 million	$2.00	8.57

Bain Capital Specialty Finance has higher revenue and earnings than HCM Acquisition.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HCM Acquisition	N/A	N/A	N/A
Bain Capital Specialty Finance	43.90%	12.09%	5.49%

Analyst Recommendations

This is a summary of recent recommendations and price targets for HCM Acquisition and Bain Capital Specialty Finance, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HCM Acquisition	0	0	0	0	N/A
Bain Capital Specialty Finance	0	1	1	0	2.50

Bain Capital Specialty Finance has a consensus price target of $17.00, indicating a potential downside of 0.76%. Given Bain Capital Specialty Finance’s higher possible upside, analysts plainly believe Bain Capital Specialty Finance is more favorable than HCM Acquisition.

Institutional and Insider Ownership

11.8% of HCM Acquisition shares are owned by institutional investors. 71.2% of HCM Acquisition shares are owned by company insiders. Comparatively, 0.6% of Bain Capital Specialty Finance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Bain Capital Specialty Finance beats HCM Acquisition on 7 of the 9 factors compared between the two stocks.

About HCM Acquisition

HCM Acquisition Corp does not have significant operations. The company focuses on effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities. HCM Acquisition Corp was incorporated in 2021 and is based in Stamford, Connecticut.

About Bain Capital Specialty Finance

Bain Capital Specialty Finance, Inc. is business development company 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.