Head to Head Comparison: Quantum FinTech Acquisition (NYSE:QFTA) versus 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 compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Quantum FinTech 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
Quantum FinTech Acquisition	N/A	N/A	$11.05 million	N/A	N/A
Bain Capital Specialty Finance	$297.79 million	3.93	$123.38 million	$1.99	9.11

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

Volatility & Risk

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Quantum FinTech Acquisition and Bain Capital Specialty Finance, as provided 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 price target of $17.50, indicating a potential downside of 3.50%. 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.

Insider & Institutional Ownership

30.5% of Quantum FinTech Acquisition shares are held by institutional investors. 2.4% of Quantum FinTech Acquisition shares are held by company insiders. Comparatively, 0.6% of Bain Capital Specialty Finance shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

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%

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.