Reviewing Vinci Partners Investments (NASDAQ:VINP) and StoneCastle Financial (NASDAQ:BANX)

Vinci Partners Investments (NASDAQ:VINP) and StoneCastle Financial (NASDAQ:BANX) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Valuation and Earnings

This table compares Vinci Partners Investments and StoneCastle Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vinci Partners Investments $66.01 million 10.24 $33.02 million $0.69 17.65
StoneCastle Financial $16.65 million 8.68 $7.78 million $2.54 8.65

Vinci Partners Investments has higher revenue and earnings than StoneCastle Financial. StoneCastle Financial is trading at a lower price-to-earnings ratio than Vinci Partners Investments, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

21.2% of Vinci Partners Investments shares are held by institutional investors. Comparatively, 25.1% of StoneCastle Financial shares are held by institutional investors. 0.5% of StoneCastle Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Vinci Partners Investments and StoneCastle Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vinci Partners Investments 44.79% 17.49% 14.36%
StoneCastle Financial 96.59% N/A N/A

Analyst Ratings

This is a summary of recent recommendations for Vinci Partners Investments and StoneCastle Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vinci Partners Investments 1 0 4 0 2.60
StoneCastle Financial 0 0 0 0 N/A

Vinci Partners Investments currently has a consensus target price of $23.80, suggesting a potential upside of 95.40%. Given Vinci Partners Investments’ higher probable upside, equities research analysts clearly believe Vinci Partners Investments is more favorable than StoneCastle Financial.

Dividends

Vinci Partners Investments pays an annual dividend of $0.64 per share and has a dividend yield of 5.3%. StoneCastle Financial pays an annual dividend of $1.52 per share and has a dividend yield of 6.9%. Vinci Partners Investments pays out 92.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. StoneCastle Financial pays out 59.8% of its earnings in the form of a dividend. StoneCastle Financial has raised its dividend for 1 consecutive years. StoneCastle Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Vinci Partners Investments beats StoneCastle Financial on 8 of the 15 factors compared between the two stocks.

Vinci Partners Investments Company Profile

Vinci Partners Investments Ltd. operates as an asset management platform in Brazil. The company's portfolio of investment products and solutions covers private equity, infrastructures, real estate, credit, public equities, hedge funds, and investment products and solutions to institutional and HNWI clients. It also offers financial and strategic advisory services, focusing primarily on IPO advisory and mergers and acquisition transactions on the sell side or the buy side to entrepreneurs, corporate management teams, and/or boards of directors. The company was founded in 2009 and is headquartered in Rio de Janeiro, Brazil.

StoneCastle Financial Company Profile

StoneCastle Financial Corp. is a closed ended balanced mutual fund launched and managed by StoneCastle Asset Management LLC. It invests in public equity markets of the United States. The fund invests in stocks of companies operating across the banking sector. It invests in dividend paying growth and value stocks of companies. For its fixed income portion, the fund invests in subordinated debt securities which are rated BBB- or better by Kroll Ratings. The fund employs fundamental analysis with bottom-up security picking approach by focusing on factors such as review of historical and prospective financial information, interviews with management and key employees of the prospective bank, financial models and projections, changes in interest rates, changes in unemployment rates, changes in home prices, changes in economic activity to create its portfolio. It employs proprietary research to create its portfolio. StoneCastle Financial Corp. was formed on February 7, 2013 and is domiciled in the United States.

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