Nuveen Ohio Quality Income Muncpl Fund (NYSE:NUO) vs. Goldman Sachs BDC (NYSE:GSBD) Critical Analysis

Nuveen Ohio Quality Income Muncpl Fund (NYSE:NUO) and Goldman Sachs BDC (NYSE:GSBD) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Dividends

Nuveen Ohio Quality Income Muncpl Fund pays an annual dividend of $0.52 per share and has a dividend yield of 3.8%. Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 14.5%. Goldman Sachs BDC pays out 90.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Goldman Sachs BDC has raised its dividend for 3 consecutive years. Goldman Sachs BDC is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Nuveen Ohio Quality Income Muncpl Fund has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500. Comparatively, Goldman Sachs BDC has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Nuveen Ohio Quality Income Muncpl Fund and Goldman Sachs BDC, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nuveen Ohio Quality Income Muncpl Fund 0 0 0 0 N/A
Goldman Sachs BDC 0 3 2 0 2.40

Goldman Sachs BDC has a consensus price target of $20.19, indicating a potential upside of 62.54%. Given Goldman Sachs BDC’s higher probable upside, analysts plainly believe Goldman Sachs BDC is more favorable than Nuveen Ohio Quality Income Muncpl Fund.

Valuation and Earnings

This table compares Nuveen Ohio Quality Income Muncpl Fund and Goldman Sachs BDC’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nuveen Ohio Quality Income Muncpl Fund N/A N/A N/A N/A N/A
Goldman Sachs BDC $147.26 million 3.41 $36.15 million $1.98 6.27

Goldman Sachs BDC has higher revenue and earnings than Nuveen Ohio Quality Income Muncpl Fund.

Profitability

This table compares Nuveen Ohio Quality Income Muncpl Fund and Goldman Sachs BDC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nuveen Ohio Quality Income Muncpl Fund N/A N/A N/A
Goldman Sachs BDC 24.55% 11.60% 5.38%

Institutional and Insider Ownership

27.4% of Nuveen Ohio Quality Income Muncpl Fund shares are held by institutional investors. Comparatively, 35.5% of Goldman Sachs BDC shares are held by institutional investors. 1.0% of Nuveen Ohio Quality Income Muncpl Fund shares are held by company insiders. Comparatively, 0.3% of Goldman Sachs BDC shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Goldman Sachs BDC beats Nuveen Ohio Quality Income Muncpl Fund on 10 of the 12 factors compared between the two stocks.

Nuveen Ohio Quality Income Muncpl Fund Company Profile

Nuveen Ohio Quality Municipal Income Fund is a closed ended fixed income mutual fund launched by Nuveen Investments, Inc. The fund is co-managed by Nuveen Fund Advisors LLC and Nuveen Asset Management, LLC. It invests in the fixed income markets of Ohio. The fund invests in tax exempt municipal bonds. It employs fundamental analysis, with bottom-up stock picking approach, to create its portfolio. The fund benchmarks the performance of its portfolio against the Standard & Poor's Ohio Municipal Bond Index and Standard & Poor's National Municipal Bond Index. The fund was formerly known as Nuveen Ohio Quality Income Municipal Fund. Nuveen Ohio Quality Municipal Income Fund was formed on October 17, 1991 and is domiciled in the United States.

Goldman Sachs BDC Company Profile

Goldman Sachs BDC, Inc. is a business development company specializing in middle market and mezzanine investment in private companies. It seeks to make capital appreciation through direct originations of secured debt, senior secured debt, junior secured debt, including first lien, first lien/last-out unitranche and second lien debt, unsecured debt, including mezzanine debt and, to a lesser extent, investments in equities. The fund primarily invests in United States. It seeks to invest between $10 million and $75 million in companies with EBITDA between $5 million and $75 million annually.

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