Portman Ridge Finance (NASDAQ:PTMN – Get Free Report) and Binah Capital Group (NASDAQ:BCG – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.
Earnings and Valuation
This table compares Portman Ridge Finance and Binah Capital Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Portman Ridge Finance | -$2.85 million | -33.06 | -$5.93 million | ($0.93) | -7.67 |
| Binah Capital Group | $181.05 million | 0.13 | $2.31 million | $0.14 | 10.31 |
Insider and Institutional Ownership
30.1% of Portman Ridge Finance shares are held by institutional investors. Comparatively, 5.0% of Binah Capital Group shares are held by institutional investors. 2.1% of Portman Ridge Finance shares are held by insiders. Comparatively, 7.8% of Binah Capital Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Portman Ridge Finance and Binah Capital Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Portman Ridge Finance | 0 | 0 | 0 | 0 | 0.00 |
| Binah Capital Group | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares Portman Ridge Finance and Binah Capital Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Portman Ridge Finance | -15.92% | 11.49% | 4.54% |
| Binah Capital Group | 1.70% | 260.70% | 4.59% |
Risk and Volatility
Portman Ridge Finance has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Binah Capital Group has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500.
Summary
Binah Capital Group beats Portman Ridge Finance on 10 of the 12 factors compared between the two stocks.
About Portman Ridge Finance
Portman Ridge Finance Corporation is a business development company specializing in investments in unitranche loans (including last out), first lien loans, second lien loans, subordinated debt, equity co-investment, mezzanine, buyout in middle market companies. It also makes acquisitions in businesses complementary to the firm's business. It primarily invests in healthcare, cargo transport, manufacturing, industrial & environmental services, logistics & distribution, media & telecommunications, real estate, education, automotive, agriculture, aerospace/defense, packaging, electronics, finance, non-durable consumer, consumer products, business services, utilities, insurance, and food and beverage sectors. The fund typically invests $1 million to $20 million in its portfolio companies. It provides senior secured term loans from $2 million to $20 million maturing in five to seven years; second lien term loans from $5 million to $15 million maturing in six to eight years; senior unsecured loans $5 million to $23 million maturing in six to eight years; mezzanine loans from $5 million to $15 million maturing in seven to ten years; and equity investments from $1 to $5 million. The fund targets the companies with EBITDA between $5 million and $25 million. While investing in debt securities, it invests in those middle market firms with EBITDA between $10 million and $50 million and/or total debt between $25 million and $150 million. It invests in minority, and majority or control equity positions alongside its private equity sponsor partners.
About Binah Capital Group
Binah Capital Group, Inc., together with its subsidiaries, operates in the wealth management industry. The company provides access to stock, bond, exchange-traded fund, and options execution services; and research, compliance, supervision, and accounting and related services for financial advisors. It also offers mutual funds and insurance products, as well as alternative investments, such as non-traded real estate investment trusts, unit trusts, and fixed and variable annuities. The company was founded in 2016 and is headquartered in Albany, New York. Binah Capital Group, Inc. operates as a subsidiary of MHC Securities, LLC.
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