Head to Head Review: New Providence Acquisition Corp. II (NASDAQ:NPAB) vs. Bain Capital Specialty Finance (NYSE:BCSF)

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

Valuation and Earnings

This table compares Bain Capital Specialty Finance and New Providence Acquisition Corp. II”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bain Capital Specialty Finance	$297.79 million	3.74	$123.38 million	$1.99	8.66
New Providence Acquisition Corp. II	N/A	N/A	N/A	N/A	N/A

Bain Capital Specialty Finance has higher revenue and earnings than New Providence Acquisition Corp. II.

Risk and Volatility

Bain Capital Specialty Finance has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, New Providence Acquisition Corp. II has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500.

Profitability

This table compares Bain Capital Specialty Finance and New Providence Acquisition Corp. II’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%
New Providence Acquisition Corp. II	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings for Bain Capital Specialty Finance and New Providence Acquisition Corp. II, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bain Capital Specialty Finance	0	1	1	0	2.50
New Providence Acquisition Corp. II	0	0	0	0	0.00

Bain Capital Specialty Finance currently has a consensus price target of $17.00, indicating a potential downside of 1.39%. Given Bain Capital Specialty Finance’s stronger consensus rating and higher probable upside, research analysts plainly believe Bain Capital Specialty Finance is more favorable than New Providence Acquisition Corp. II.

Summary

Bain Capital Specialty Finance beats New Providence Acquisition Corp. II on 8 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 New Providence Acquisition Corp. II

New Providence Acquisition Corp. II does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or other similar business combination with one or more businesses in the consumer industry. The company was incorporated in 2020 and is based in Austin, Texas.