Analyzing Vinci Partners Investments (NASDAQ:VINP) & Barings BDC (NYSE:BBDC)

Vinci Partners Investments (NASDAQ:VINPGet Free Report) and Barings BDC (NYSE:BBDCGet Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Vinci Partners Investments and Barings BDC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vinci Partners Investments 0 0 3 0 3.00
Barings BDC 0 2 1 0 2.33

Vinci Partners Investments presently has a consensus price target of $14.67, suggesting a potential upside of 34.56%. Barings BDC has a consensus price target of $9.58, suggesting a potential downside of 1.51%. Given Vinci Partners Investments’ stronger consensus rating and higher possible upside, analysts plainly believe Vinci Partners Investments is more favorable than Barings BDC.

Insider and Institutional Ownership

34.1% of Vinci Partners Investments shares are held by institutional investors. Comparatively, 44.1% of Barings BDC shares are held by institutional investors. 49.3% of Vinci Partners Investments shares are held by company insiders. Comparatively, 0.5% of Barings BDC shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Vinci Partners Investments and Barings BDC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vinci Partners Investments 50.51% 17.86% 12.07%
Barings BDC 45.35% 10.77% 4.78%

Volatility & Risk

Vinci Partners Investments has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500. Comparatively, Barings BDC has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Dividends

Vinci Partners Investments pays an annual dividend of $0.68 per share and has a dividend yield of 6.2%. Barings BDC pays an annual dividend of $1.04 per share and has a dividend yield of 10.7%. Vinci Partners Investments pays out 84.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Barings BDC pays out 84.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Vinci Partners Investments and Barings BDC’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vinci Partners Investments $91.03 million 6.44 $44.19 million $0.81 13.46
Barings BDC $289.20 million 3.56 $128.00 million $1.23 7.91

Barings BDC has higher revenue and earnings than Vinci Partners Investments. Barings BDC is trading at a lower price-to-earnings ratio than Vinci Partners Investments, indicating that it is currently the more affordable of the two stocks.

Summary

Vinci Partners Investments beats Barings BDC on 10 of the 16 factors compared between the two stocks.

About Vinci Partners Investments

(Get Free Report)

Vinci Partners Investments Ltd. operates as an asset management firm in Brazil. The company focuses on private markets, liquid strategies, investment products and solutions, and retirement services. It offers private equity, infrastructure, real estate, credit, special situations, equities, hedge funds, and investment products and solutions comprising portfolio and management services. In addition, the company financial and strategic advisory services, focusing on IPO advisory and mergers and acquisition transactions to entrepreneurs, corporate senior management teams, and boards of directors. Vinci Partners Investments Ltd. was founded in 2009 and is based in Rio de Janeiro, Brazil.

About Barings BDC

(Get Free Report)

Barings BDC, Inc. is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. It seeks to invest primarily in senior secured loans, first lien debt, unitranche, second lien debt, subordinated debt, equity co-investments and senior secured private debt investments in private middle-market companies that operate across a wide range of industries. It specializes in mezzanine, leveraged buyouts, management buyouts, ESOPs, change of control transactions, acquisition financings, growth financing, and recapitalizations in lower middle market, mature, and later stage companies. It invests in manufacturing and distribution; business services and technology; transportation and logistics; consumer product and services. It invests in United States. It invests in companies with EBITDA of $10 million to $75 million, typically in private equity sponsor backed.

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