Critical Contrast: Goldman Sachs BDC (NYSE:GSBD) and Blackrock Muniyld California Quty Fd (NYSE:MCA)

Goldman Sachs BDC (NYSE:GSBD) and Blackrock Muniyld California Quty Fd (NYSE:MCA) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and price targets for Goldman Sachs BDC and Blackrock Muniyld California Quty Fd, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Goldman Sachs BDC 0 4 1 0 2.20
Blackrock Muniyld California Quty Fd 0 0 0 0 N/A

Goldman Sachs BDC presently has a consensus target price of $15.92, suggesting a potential upside of 3.69%. Given Goldman Sachs BDC’s higher possible upside, equities analysts clearly believe Goldman Sachs BDC is more favorable than Blackrock Muniyld California Quty Fd.

Earnings & Valuation

This table compares Goldman Sachs BDC and Blackrock Muniyld California Quty Fd’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Goldman Sachs BDC $147.26 million 4.22 $36.15 million $1.98 7.75
Blackrock Muniyld California Quty Fd N/A N/A N/A N/A N/A

Goldman Sachs BDC has higher revenue and earnings than Blackrock Muniyld California Quty Fd.

Profitability

This table compares Goldman Sachs BDC and Blackrock Muniyld California Quty Fd’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Goldman Sachs BDC -8.27% 11.64% 4.97%
Blackrock Muniyld California Quty Fd N/A N/A N/A

Insider & Institutional Ownership

35.1% of Goldman Sachs BDC shares are held by institutional investors. 0.4% of Goldman Sachs BDC shares are held by company insiders. Comparatively, 1.0% of Blackrock Muniyld California Quty Fd shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 11.7%. Blackrock Muniyld California Quty Fd pays an annual dividend of $0.58 per share and has a dividend yield of 4.0%. 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 1 consecutive years and Blackrock Muniyld California Quty Fd has raised its dividend for 1 consecutive years.

Volatility and Risk

Goldman Sachs BDC has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, Blackrock Muniyld California Quty Fd has a beta of 0.12, indicating that its stock price is 88% less volatile than the S&P 500.

Summary

Goldman Sachs BDC beats Blackrock Muniyld California Quty Fd on 8 of the 11 factors compared between the two stocks.

About Goldman Sachs BDC

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.

About Blackrock Muniyld California Quty Fd

BlackRock MuniYield California Quality Fund, Inc. is a closed ended fixed income mutual fund launched by BlackRock, Inc. It is managed by BlackRock Advisors, LLC. The fund invests in fixed income markets. It invests in a portfolio of long-term investment-grade municipal obligations, the interest on which is exempt from Federal and California income taxes. The fund was formerly known as Blackrock MuniYield California Insured Fund, Inc. BlackRock MuniYield California Quality Fund, Inc. was formed on October 30, 1992 and is domiciled in United States.

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