Galaxy Digital (NASDAQ:GLXY) & Bain Capital Specialty Finance (NYSE:BCSF) Head-To-Head Comparison

Bain Capital Specialty Finance (NYSE:BCSF) and Galaxy Digital (NASDAQ:GLXY) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Volatility & Risk

Bain Capital Specialty Finance has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Galaxy Digital has a beta of 5.11, indicating that its stock price is 411% more volatile than the S&P 500.

Earnings and Valuation

This table compares Bain Capital Specialty Finance and Galaxy Digital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bain Capital Specialty Finance	$78.39 million	8.92	$98.76 million	$0.99	10.88
Galaxy Digital	$61.36 billion	0.13	-$241.35 million	($0.65)	-30.89

Bain Capital Specialty Finance has higher earnings, but lower revenue than Galaxy Digital. Galaxy Digital is trading at a lower price-to-earnings ratio than Bain Capital Specialty Finance, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bain Capital Specialty Finance and Galaxy Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bain Capital Specialty Finance	24.22%	10.40%	4.33%
Galaxy Digital	-0.75%	-6.25%	-1.67%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Bain Capital Specialty Finance and Galaxy Digital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bain Capital Specialty Finance	1	3	0	0	1.75
Galaxy Digital	1	3	10	0	2.64

Bain Capital Specialty Finance currently has a consensus price target of $12.60, suggesting a potential upside of 16.95%. Galaxy Digital has a consensus price target of $39.58, suggesting a potential upside of 97.13%. Given Galaxy Digital’s stronger consensus rating and higher probable upside, analysts plainly believe Galaxy Digital is more favorable than Bain Capital Specialty Finance.

Summary

Bain Capital Specialty Finance beats Galaxy Digital on 7 of the 12 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 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.