Reviewing Fortune Rise Acquisition (NASDAQ:FRLA) & Bain Capital Specialty Finance (NYSE:BCSF)

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

Profitability

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

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

Analyst Recommendations

This is a breakdown of recent recommendations for Fortune Rise Acquisition and Bain Capital Specialty Finance, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fortune Rise 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 $17.00, suggesting a potential downside of 0.06%. Given Bain Capital Specialty Finance’s stronger consensus rating and higher possible upside, analysts clearly believe Bain Capital Specialty Finance is more favorable than Fortune Rise Acquisition.

Insider & Institutional Ownership

52.9% of Fortune Rise Acquisition shares are owned by institutional investors. 1.0% of Fortune Rise Acquisition shares are owned by company insiders. Comparatively, 0.6% of Bain Capital Specialty Finance shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fortune Rise Acquisition	N/A	N/A	N/A	N/A	N/A
Bain Capital Specialty Finance	$297.79 million	3.69	$123.38 million	$1.99	8.55

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

Volatility and Risk

Fortune Rise Acquisition has a beta of 0.01, indicating that its share price is 99% less volatile than the S&P 500. Comparatively, Bain Capital Specialty Finance has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Summary

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

About Fortune Rise Acquisition

Fortune Rise Acquisition Corporation does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company was incorporated in 2021 and is based in Clearwater, 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.