Financial Review: Bain Capital Specialty Finance (BCSF) & Pensare Acquisition (WRLS)

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

Analyst Recommendations

This is a summary of current ratings and target prices for Bain Capital Specialty Finance and Pensare Acquisition, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bain Capital Specialty Finance 0 1 3 0 2.75
Pensare Acquisition 0 0 0 0 N/A

Bain Capital Specialty Finance currently has a consensus target price of $20.25, suggesting a potential upside of 14.99%. Given Bain Capital Specialty Finance’s higher probable upside, research analysts plainly believe Bain Capital Specialty Finance is more favorable than Pensare Acquisition.

Earnings and Valuation

This table compares Bain Capital Specialty Finance and Pensare Acquisition’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bain Capital Specialty Finance $24.60 million 31.37 $19.29 million N/A N/A
Pensare Acquisition N/A N/A -$2.52 million N/A N/A

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

Profitability

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

Net Margins Return on Equity Return on Assets
Bain Capital Specialty Finance 57.45% 6.25% 3.58%
Pensare Acquisition N/A -32.80% -0.52%

Dividends

Bain Capital Specialty Finance pays an annual dividend of $1.64 per share and has a dividend yield of 9.3%. Pensare Acquisition does not pay a dividend.

Institutional and Insider Ownership

59.4% of Pensare Acquisition shares are held by institutional investors. 0.2% of Bain Capital Specialty Finance shares are held by company insiders. Comparatively, 8.5% of Pensare Acquisition shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Bain Capital Specialty Finance beats Pensare Acquisition on 8 of the 10 factors compared between the two stocks.

About Bain Capital Specialty Finance

Bain Capital Specialty Finance, Inc. operates as a development stage company, which intends to focus on senior investments with a first or second lien on collateral and strong structures and documentation, intended to protect the lender. The company was founded on October 5, 2015 and is headquartered in Boston, MA.

About Pensare Acquisition

Pensare Acquisition Corp. does not have significant operations. It intends to enter into a merger, stock exchange, asset acquisition, stock purchase, recapitalization, reorganization, or other similar business combination with one or more businesses or entities in the United States. It plans to focus on businesses in the wireless telecommunications industry. The company was founded in 2016 and is based in Atlanta, Georgia. Pensare Acquisition Corp. operates as a subsidiary of Pensare Sponsor Group, LLC.

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