Reviewing Eagle Point Credit (NYSE:ECC) and Binah Capital Group (NASDAQ:BCG)

Eagle Point Credit (NYSE:ECC) and Binah Capital Group (NASDAQ:BCG) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Volatility and Risk

Eagle Point Credit has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Binah Capital Group has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Eagle Point Credit and Binah Capital Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eagle Point Credit	0	2	3	1	2.83
Binah Capital Group	1	0	0	0	1.00

Eagle Point Credit currently has a consensus price target of $8.21, indicating a potential upside of 35.90%. Given Eagle Point Credit’s stronger consensus rating and higher probable upside, research analysts clearly believe Eagle Point Credit is more favorable than Binah Capital Group.

Profitability

This table compares Eagle Point Credit and Binah Capital Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eagle Point Credit	6.73%	13.49%	8.59%
Binah Capital Group	-1.05%	-805.18%	-2.77%

Insider & Institutional Ownership

19.5% of Eagle Point Credit shares are owned by institutional investors. Comparatively, 5.0% of Binah Capital Group shares are owned by institutional investors. 0.2% of Eagle Point Credit shares are owned by insiders. Comparatively, 1.9% of Binah Capital Group shares are owned by 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.

Earnings and Valuation

This table compares Eagle Point Credit and Binah Capital Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eagle Point Credit	$31.03 million	14.98	$85.49 million	$0.11	54.91
Binah Capital Group	$168.90 million	0.16	-$4.56 million	($0.12)	-13.17

Eagle Point Credit has higher earnings, but lower revenue than Binah Capital Group. Binah Capital Group is trading at a lower price-to-earnings ratio than Eagle Point Credit, indicating that it is currently the more affordable of the two stocks.

Summary

Eagle Point Credit beats Binah Capital Group on 12 of the 15 factors compared between the two stocks.

About Eagle Point Credit

Eagle Point Credit Company Inc. is a closed ended fund launched and managed by Eagle Point Credit Management LLC. It invests in fixed income markets of the United States. The fund invests equity and junior debt tranches of collateralized loan obligations consisting primarily of below investment grade U.S. senior secured loans. Eagle Point Credit Company Inc. was formed on March 24, 2014 and is domiciled in the United States.

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.