Head-To-Head Review: Cartesian Growth Co. II (NASDAQ:RENE) vs. Bain Capital Specialty Finance (NYSE:BCSF)

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

Analyst Ratings

This is a summary of recent ratings for Cartesian Growth Co. II and Bain Capital Specialty Finance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cartesian Growth Co. II	0	0	0	0	N/A
Bain Capital Specialty Finance	0	1	1	0	2.50

Bain Capital Specialty Finance has a consensus price target of $17.00, suggesting a potential downside of 1.28%. Given Bain Capital Specialty Finance’s higher probable upside, analysts plainly believe Bain Capital Specialty Finance is more favorable than Cartesian Growth Co. II.

Earnings & Valuation

This table compares Cartesian Growth Co. II and Bain Capital Specialty Finance’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cartesian Growth Co. II	N/A	N/A	$11.44 million	N/A	N/A
Bain Capital Specialty Finance	$146.76 million	7.58	$123.38 million	$2.00	8.61

Bain Capital Specialty Finance has higher revenue and earnings than Cartesian Growth Co. II.

Volatility and Risk

Cartesian Growth Co. II has a beta of -0.02, meaning that its share price is 102% less volatile than the S&P 500. Comparatively, Bain Capital Specialty Finance has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Insider & Institutional Ownership

59.0% of Cartesian Growth Co. II shares are held by institutional investors. 20.0% of Cartesian Growth Co. II 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Cartesian Growth Co. II and Bain Capital Specialty Finance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cartesian Growth Co. II	N/A	-46.57%	4.43%
Bain Capital Specialty Finance	43.90%	12.09%	5.49%

Summary

Bain Capital Specialty Finance beats Cartesian Growth Co. II on 8 of the 10 factors compared between the two stocks.

About Cartesian Growth Co. II

Cartesian Growth Corporation II does not have significant operations. It focuses on effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or other similar business combination with one or more businesses or entities. The company was incorporated in 2021 and is based in New York, New York.

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.