Head-To-Head Comparison: Integrated Rail and Resources Acquisition (NYSE:IRRX) & Bain Capital Specialty Finance (NYSE:BCSF)

Bain Capital Specialty Finance (NYSE:BCSF) and Integrated Rail and Resources Acquisition (NYSE:IRRX) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Volatility & Risk

Bain Capital Specialty Finance has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Integrated Rail and Resources Acquisition has a beta of -0.01, indicating that its stock price is 101% less volatile than the S&P 500.

Insider and Institutional Ownership

47.5% of Integrated Rail and Resources Acquisition shares are owned by institutional investors. 0.6% of Bain Capital Specialty Finance shares are owned by insiders. Comparatively, 34.6% of Integrated Rail and Resources Acquisition shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Bain Capital Specialty Finance and Integrated Rail and Resources Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bain Capital Specialty Finance	43.42%	12.64%	5.57%
Integrated Rail and Resources Acquisition	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for Bain Capital Specialty Finance and Integrated Rail and Resources Acquisition, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bain Capital Specialty Finance	0	1	1	0	2.50
Integrated Rail and Resources Acquisition	0	0	0	0	N/A

Bain Capital Specialty Finance currently has a consensus target price of $17.00, suggesting a potential upside of 7.12%. Given Bain Capital Specialty Finance’s higher probable upside, analysts plainly believe Bain Capital Specialty Finance is more favorable than Integrated Rail and Resources Acquisition.

Earnings & Valuation

This table compares Bain Capital Specialty Finance and Integrated Rail and Resources Acquisition’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bain Capital Specialty Finance	$146.76 million	6.98	$123.38 million	$2.00	7.94
Integrated Rail and Resources Acquisition	N/A	N/A	N/A	N/A	N/A

Bain Capital Specialty Finance has higher revenue and earnings than Integrated Rail and Resources Acquisition.

Summary

Bain Capital Specialty Finance beats Integrated Rail and Resources Acquisition on 7 of the 9 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 Integrated Rail and Resources Acquisition

Integrated Rail and Resources Acquisition Corp. does not have significant operations. It focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses in railroad companies in North America. Integrated Rail and Resources Acquisition Corp. was incorporated in 2021 and is based in Winter Park, Florida.