Head to Head Contrast: Binah Capital Group (NASDAQ:BCG) vs. Portman Ridge Finance (NASDAQ:PTMN)

Binah Capital Group (NASDAQ:BCG) and Portman Ridge Finance (NASDAQ:PTMN) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.

Valuation and Earnings

This table compares Binah Capital Group and Portman Ridge Finance”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Binah Capital Group	$181.05 million	0.13	$2.31 million	$0.14	10.31
Portman Ridge Finance	-$2.85 million	-33.06	-$5.93 million	($0.93)	-7.67

Binah Capital Group has higher revenue and earnings than Portman Ridge Finance. Portman Ridge Finance 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.

Profitability

This table compares Binah Capital Group and Portman Ridge Finance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Binah Capital Group	1.70%	260.70%	4.59%
Portman Ridge Finance	-15.92%	11.49%	4.54%

Analyst Recommendations

This is a summary of recent ratings and target prices for Binah Capital Group and Portman Ridge Finance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Binah Capital Group	1	0	0	0	1.00
Portman Ridge Finance	0	0	0	0	0.00

Insider & Institutional Ownership

5.0% of Binah Capital Group shares are held by institutional investors. Comparatively, 30.1% of Portman Ridge Finance shares are held by institutional investors. 7.8% of Binah Capital Group shares are held by company insiders. Comparatively, 2.1% of Portman Ridge Finance shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Binah Capital Group has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500. Comparatively, Portman Ridge Finance has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.

Summary

Binah Capital Group beats Portman Ridge Finance on 10 of the 12 factors compared between the two stocks.

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.

About Portman Ridge Finance

Portman Ridge Finance Corporation is a business development company specializing in investments in unitranche loans (including last out), first lien loans, second lien loans, subordinated debt, equity co-investment, mezzanine, buyout in middle market companies. It also makes acquisitions in businesses complementary to the firm's business. It primarily invests in healthcare, cargo transport, manufacturing, industrial & environmental services, logistics & distribution, media & telecommunications, real estate, education, automotive, agriculture, aerospace/defense, packaging, electronics, finance, non-durable consumer, consumer products, business services, utilities, insurance, and food and beverage sectors. The fund typically invests $1 million to $20 million in its portfolio companies. It provides senior secured term loans from $2 million to $20 million maturing in five to seven years; second lien term loans from $5 million to $15 million maturing in six to eight years; senior unsecured loans $5 million to $23 million maturing in six to eight years; mezzanine loans from $5 million to $15 million maturing in seven to ten years; and equity investments from $1 to $5 million. The fund targets the companies with EBITDA between $5 million and $25 million. While investing in debt securities, it invests in those middle market firms with EBITDA between $10 million and $50 million and/or total debt between $25 million and $150 million. It invests in minority, and majority or control equity positions alongside its private equity sponsor partners.