Galaxy Digital (NASDAQ:GLXY – Get Free Report) and Bain Capital Specialty Finance (NYSE:BCSF – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Earnings & Valuation
This table compares Galaxy Digital and Bain Capital Specialty Finance”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Galaxy Digital | $43.76 billion | 0.20 | -$241.35 million | ($0.65) | -34.08 |
| Bain Capital Specialty Finance | $273.24 million | 2.57 | $98.76 million | $0.99 | 10.95 |
Analyst Recommendations
This is a breakdown of current ratings for Galaxy Digital and Bain Capital Specialty Finance, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Galaxy Digital | 1 | 3 | 10 | 0 | 2.64 |
| Bain Capital Specialty Finance | 1 | 3 | 0 | 0 | 1.75 |
Galaxy Digital currently has a consensus target price of $39.58, indicating a potential upside of 78.71%. Bain Capital Specialty Finance has a consensus target price of $12.60, indicating a potential upside of 16.18%. Given Galaxy Digital’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Galaxy Digital is more favorable than Bain Capital Specialty Finance.
Profitability
This table compares Galaxy Digital and Bain Capital Specialty Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Galaxy Digital | -0.75% | -6.25% | -1.67% |
| Bain Capital Specialty Finance | 24.22% | 10.40% | 4.33% |
Risk and Volatility
Galaxy Digital has a beta of 5.11, indicating that its share price is 411% more volatile than the S&P 500. Comparatively, Bain Capital Specialty Finance has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.
Summary
Bain Capital Specialty Finance beats Galaxy Digital on 7 of the 12 factors compared between the two stocks.
About Galaxy Digital
Galaxy Digital Holdings Ltd. is a financial services and an investment management company, which engages in the digital asset, cryptocurrency, and block chain technology sectors. It operates through the following segments: Trading, Principal Investment, Asset Management, Investment Banking, Mining, and Corporate & Other. The Trading segment manages positions in cryptocurrency and other liquid digital assets contributed to the business at the outset and continues to invest and trade in those and related assets. The Principal Investment segment includes portfolio of private principal investments across the block chain ecosystem, including early- and later-stage equity, pre-launch network contributions, and other structured alternative investments. The Asset Management segment manages capital on behalf of third parties in exchange for management fees and performance-based compensation. The Investment Banking segment offers the spectrum of investment banking, including, but not limited to general corporate advisory, mergers and acquisition, transaction advisory, restructuring and capital rising. The Mining segment focuses to provide financial services for North American miners, through its partnerships. The Corporate & Other consists of the partnership’s unallocated corporate overhead and other unallocated costs not identifiable to any of the reportable segments. The company was founded by Michael Edward Novogratz on February 10, 2006 and is headquartered in New York, NY.
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.
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