Head-To-Head Analysis: Quantum FinTech Acquisition (NYSE:QFTA) & Bain Capital Specialty Finance (NYSE:BCSF)

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

Risk and Volatility

Quantum FinTech Acquisition has a beta of -0.3, suggesting that its share price is 130% less volatile than the S&P 500. Comparatively, Bain Capital Specialty Finance has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Quantum FinTech Acquisition and Bain Capital Specialty Finance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quantum FinTech Acquisition	0	0	0	0	0.00
Bain Capital Specialty Finance	0	1	1	0	2.50

Bain Capital Specialty Finance has a consensus target price of $17.50, indicating a potential downside of 5.58%. Given Bain Capital Specialty Finance’s stronger consensus rating and higher possible upside, analysts plainly believe Bain Capital Specialty Finance is more favorable than Quantum FinTech Acquisition.

Valuation and Earnings

This table compares Quantum FinTech Acquisition and Bain Capital Specialty Finance”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quantum FinTech Acquisition	N/A	N/A	$11.05 million	N/A	N/A
Bain Capital Specialty Finance	$297.79 million	4.02	$123.38 million	$1.99	9.31

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Quantum FinTech Acquisition	N/A	-8.86%	0.75%
Bain Capital Specialty Finance	43.62%	11.90%	5.43%

Institutional and Insider Ownership

30.5% of Quantum FinTech Acquisition shares are owned by institutional investors. 2.4% of Quantum FinTech 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Bain Capital Specialty Finance beats Quantum FinTech Acquisition on 9 of the 11 factors compared between the two stocks.

About Quantum FinTech Acquisition

Quantum FinTech Acquisition Corporation does not have significant operations. It intends to effect a merger, capital share exchange, asset acquisition, stock purchase, recapitalization, reorganization, or other similar business combination with one or more businesses or entities. The company was incorporated in 2020 and is based in Tampa, Florida.

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.