Bain Capital Specialty Finance (NYSE:BCSF) vs. AlphaTime Acquisition (NASDAQ:ATMC) Critical Analysis

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

Volatility & Risk

Bain Capital Specialty Finance has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, AlphaTime Acquisition has a beta of -0.04, indicating that its share price is 104% less volatile than the S&P 500.

Institutional & Insider Ownership

82.2% of AlphaTime Acquisition shares are owned by institutional investors. 0.6% of Bain Capital Specialty Finance shares are owned by insiders. Comparatively, 29.4% of AlphaTime Acquisition shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bain Capital Specialty Finance	$138.19 million	6.82	$123.38 million	$1.85	7.88
AlphaTime Acquisition	N/A	N/A	N/A	N/A	N/A

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

Analyst Recommendations

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

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

Bain Capital Specialty Finance presently has a consensus target price of $18.00, suggesting a potential upside of 23.46%. Given Bain Capital Specialty Finance’s stronger consensus rating and higher possible upside, analysts plainly believe Bain Capital Specialty Finance is more favorable than AlphaTime Acquisition.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bain Capital Specialty Finance	43.62%	11.90%	5.43%
AlphaTime Acquisition	N/A	N/A	N/A

Summary

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

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.

About AlphaTime Acquisition

AlphaTime Acquisition Corp does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. The company was incorporated in 2021 and is based in New York, New York.