Saratoga Investment (NYSE:SAR – Get Free Report) and Binah Capital Group (NASDAQ:BCG – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Saratoga Investment and Binah Capital Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Saratoga Investment | 1 | 4 | 0 | 0 | 1.80 |
| Binah Capital Group | 1 | 0 | 0 | 0 | 1.00 |
Saratoga Investment presently has a consensus target price of $19.67, indicating a potential upside of 52.70%. Given Saratoga Investment’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Saratoga Investment is more favorable than Binah Capital Group.
Profitability
This table compares Saratoga Investment and Binah Capital Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Saratoga Investment | -3.35% | 8.66% | 2.78% |
| Binah Capital Group | 2.17% | 195.38% | 5.95% |
Earnings & Valuation
This table compares Saratoga Investment and Binah Capital Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Saratoga Investment | $8.73 million | 22.95 | $36.60 million | ($0.25) | -51.52 |
| Binah Capital Group | $187.14 million | 0.10 | $2.31 million | $0.18 | 6.28 |
Saratoga Investment has higher earnings, but lower revenue than Binah Capital Group. Saratoga Investment is trading at a lower price-to-earnings ratio than Binah Capital Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
19.1% of Saratoga Investment shares are owned by institutional investors. Comparatively, 5.0% of Binah Capital Group shares are owned by institutional investors. 10.6% of Saratoga Investment shares are owned by company insiders. Comparatively, 7.8% of Binah Capital Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Saratoga Investment has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Binah Capital Group has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500.
Summary
Saratoga Investment beats Binah Capital Group on 7 of the 13 factors compared between the two stocks.
About Saratoga Investment
Saratoga Investment Corp. is a business development company specializing in leveraged and management buyouts, acquisition financings, growth financings, recapitalization, debt refinancing, and transitional financing transactions at the lower end of middle market companies. It structures its investments as debt and equity by investing through first and second lien loans, mezzanine debt, co-investments, select high yield bonds, senior secured bonds, unsecured bonds, and preferred and common equity. The firm prefers to invest in aerospace, automotive aftermarket and services, business products and services, consumer products and services, education, environmental services, industrial services, financial services, food and beverage, healthcare products and services, logistics, distribution, manufacturing, restaurants services, food services, software services, technology services, specialty chemical, media and telecommunications. It seeks to invest in the United States. The firm primarily invests $5 million to $50 million in companies having EBITDA of $2 million or greater and revenues of $8 million to $250 million. The firm prefer to take a majority stake. It invests through direct lending as well as participation in loan syndicates. The firm was formerly known as GSC Investment Corp. Saratoga Investment Corp. was formed on 2007 and is based in New York, New York with an additional office in Florham Park, New Jersey.
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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