Investcorp Credit Management BDC (NASDAQ:ICMB – Get Free Report) and Vinci Compass Investments (NASDAQ:VINP – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Investcorp Credit Management BDC and Vinci Compass Investments, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Investcorp Credit Management BDC | 1 | 0 | 0 | 0 | 1.00 |
| Vinci Compass Investments | 1 | 1 | 1 | 0 | 2.00 |
Vinci Compass Investments has a consensus price target of $14.00, indicating a potential upside of 27.27%. Given Vinci Compass Investments’ stronger consensus rating and higher probable upside, analysts clearly believe Vinci Compass Investments is more favorable than Investcorp Credit Management BDC.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Investcorp Credit Management BDC | -$16.91 million | -0.59 | -$8.85 million | ($1.42) | -0.49 |
| Vinci Compass Investments | $175.01 million | 4.11 | $38.97 million | $0.70 | 15.71 |
Vinci Compass Investments has higher revenue and earnings than Investcorp Credit Management BDC. Investcorp Credit Management BDC is trading at a lower price-to-earnings ratio than Vinci Compass Investments, indicating that it is currently the more affordable of the two stocks.
Dividends
Investcorp Credit Management BDC pays an annual dividend of $0.48 per share and has a dividend yield of 69.5%. Vinci Compass Investments pays an annual dividend of $0.68 per share and has a dividend yield of 6.2%. Investcorp Credit Management BDC pays out -33.8% of its earnings in the form of a dividend. Vinci Compass Investments pays out 97.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Investcorp Credit Management BDC has raised its dividend for 1 consecutive years. Investcorp Credit Management BDC is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
7.8% of Investcorp Credit Management BDC shares are held by institutional investors. Comparatively, 34.1% of Vinci Compass Investments shares are held by institutional investors. 1.3% of Investcorp Credit Management BDC shares are held by insiders. Comparatively, 49.3% of Vinci Compass Investments shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Investcorp Credit Management BDC and Vinci Compass Investments’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Investcorp Credit Management BDC | -134.21% | 0.86% | 0.28% |
| Vinci Compass Investments | 23.77% | 12.65% | 6.67% |
Risk and Volatility
Investcorp Credit Management BDC has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Vinci Compass Investments has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500.
Summary
Vinci Compass Investments beats Investcorp Credit Management BDC on 13 of the 17 factors compared between the two stocks.
About Investcorp Credit Management BDC
Investcorp Credit Management BDC, Inc. is a business development company specializing in loan, mezzanine, middle market, growth capital, acquisitions, market/product expansion, organic growth, refinancings and recapitalization investments. It also selectively invests in mezzanine loans/structured equity and in the equity of portfolio companies through warrants and other instruments, in most cases taking such upside participation interests as part of a broader investment relationship. The fund typically invests in United States and Europe. Within United States, the fund seeks to invest in Midatlantic, Midwest, Northeast, Southeast, and West Coast regions. The fund primarily invests in cable and satellites; consumer services; healthcare equipment and services; industrials; information technology; telecommunication services; and utilities sectors. The fund seeks to invest between $5 million to $25 million in companies that have annual revenues of at least $50 million with EBITDA at least $15 million.
About Vinci Compass Investments
Vinci Partners Investments Ltd. operates as an asset management firm in Brazil. The company focuses on private markets, liquid strategies, investment products and solutions, and retirement services. It offers private equity, infrastructure, real estate, credit, special situations, equities, hedge funds, and investment products and solutions comprising portfolio and management services. In addition, the company financial and strategic advisory services, focusing on IPO advisory and mergers and acquisition transactions to entrepreneurs, corporate senior management teams, and boards of directors. Vinci Partners Investments Ltd. was founded in 2009 and is based in Rio de Janeiro, Brazil.
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