Head to Head Review: Palmer Square Capital BDC (NYSE:PSBD) and Invent Ventures (OTCMKTS:IDEA)

Invent Ventures (OTCMKTS:IDEA) and Palmer Square Capital BDC (NYSE:PSBD) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Institutional & Insider Ownership

6.5% of Palmer Square Capital BDC shares are held by institutional investors. 19.4% of Invent Ventures shares are held by company insiders. Comparatively, 1.0% of Palmer Square Capital BDC shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Invent Ventures and Palmer Square Capital BDC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invent Ventures	0	0	0	0	0.00
Palmer Square Capital BDC	0	3	1	0	2.25

Palmer Square Capital BDC has a consensus price target of $13.63, suggesting a potential upside of 11.27%. Given Palmer Square Capital BDC’s stronger consensus rating and higher possible upside, analysts plainly believe Palmer Square Capital BDC is more favorable than Invent Ventures.

Profitability

This table compares Invent Ventures and Palmer Square Capital BDC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invent Ventures	91.12%	N/A	N/A
Palmer Square Capital BDC	13.51%	10.91%	4.15%

Valuation and Earnings

This table compares Invent Ventures and Palmer Square Capital BDC”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Invent Ventures	$790,000.00	3.80	$710,000.00	N/A	N/A
Palmer Square Capital BDC	$143.51 million	2.74	$47.67 million	$0.56	21.87

Palmer Square Capital BDC has higher revenue and earnings than Invent Ventures.

Risk and Volatility

Invent Ventures has a beta of -52.44, suggesting that its share price is 5,344% less volatile than the S&P 500. Comparatively, Palmer Square Capital BDC has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Summary

Palmer Square Capital BDC beats Invent Ventures on 9 of the 12 factors compared between the two stocks.

About Invent Ventures

Invent Ventures, Inc., formerly known as Los Angeles Syndicate of Technology, Inc., is venture capital firm specializing in incubation, seed, start ups, growth capital, and early stage investments. The firm prefers to invest in technology companies including web-based software, digital media, mobile applications, social media, consumer internet, online advertising and healthcare technology . It prefers to invest in the Los Angeles area of United States. The firm seeks to invest up to $0.25 million. Invent Ventures, Inc. was founded on August 18, 2005 and is based in Santa Monica, California.

About Palmer Square Capital BDC

Palmer Square Capital BDC Inc. is an externally managed, non-diversified closed-end management investment company which primarily lends to and invests in corporate debt securities, including small to large private U.S. companies and has elected to be regulated as a business development company. Palmer Square Capital BDC Inc. is based in MISSION WOODS, Kan.