Head to Head Review: Bain Capital Specialty Finance (NYSE:BCSF) versus Horizon Space Acquisition I (NASDAQ:HSPO)

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

Institutional & Insider Ownership

69.1% of Horizon Space Acquisition I shares are owned by institutional investors. 0.6% of Bain Capital Specialty Finance shares are owned by company insiders. Comparatively, 24.4% of Horizon Space Acquisition I shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Bain Capital Specialty Finance and Horizon Space Acquisition I, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bain Capital Specialty Finance	0	2	1	0	2.33
Horizon Space Acquisition I	0	0	0	0	N/A

Bain Capital Specialty Finance presently has a consensus target price of $16.33, suggesting a potential downside of 0.16%. Given Bain Capital Specialty Finance’s higher probable upside, research analysts clearly believe Bain Capital Specialty Finance is more favorable than Horizon Space Acquisition I.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bain Capital Specialty Finance	43.42%	12.64%	5.57%
Horizon Space Acquisition I	N/A	N/A	N/A

Earnings & Valuation

This table compares Bain Capital Specialty Finance and Horizon Space Acquisition I’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bain Capital Specialty Finance	$297.79 million	3.55	$123.38 million	$2.00	8.18
Horizon Space Acquisition I	N/A	N/A	N/A	N/A	N/A

Bain Capital Specialty Finance has higher revenue and earnings than Horizon Space Acquisition I.

Summary

Bain Capital Specialty Finance beats Horizon Space Acquisition I on 6 of the 8 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 Horizon Space Acquisition I

Horizon Space Acquisition I Corp. focuses on effecting a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization, or related business combination with one or more businesses. Horizon Space Acquisition I Corp. was incorporated in 2022 and is based in New York, New York.