Barings Bdc (NYSE:BBDC – Get Free Report) and Crescent Capital BDC (NASDAQ:CCAP – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.
Profitability
This table compares Barings Bdc and Crescent Capital BDC’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Barings Bdc | 32.45% | 10.08% | 4.33% |
| Crescent Capital BDC | 9.26% | 9.34% | 4.04% |
Risk & Volatility
Barings Bdc has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Crescent Capital BDC has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.
Dividends
Valuation & Earnings
This table compares Barings Bdc and Crescent Capital BDC”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Barings Bdc | $279.21 million | 3.13 | $101.92 million | $0.85 | 9.82 |
| Crescent Capital BDC | $167.29 million | 2.45 | $34.51 million | $0.41 | 27.10 |
Barings Bdc has higher revenue and earnings than Crescent Capital BDC. Barings Bdc is trading at a lower price-to-earnings ratio than Crescent Capital BDC, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
44.1% of Barings Bdc shares are held by institutional investors. Comparatively, 49.5% of Crescent Capital BDC shares are held by institutional investors. 0.6% of Barings Bdc shares are held by company insiders. Comparatively, 1.2% of Crescent Capital BDC shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Barings Bdc and Crescent Capital BDC, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Barings Bdc | 0 | 3 | 1 | 0 | 2.25 |
| Crescent Capital BDC | 1 | 3 | 2 | 0 | 2.17 |
Barings Bdc currently has a consensus target price of $9.50, indicating a potential upside of 13.84%. Crescent Capital BDC has a consensus target price of $14.30, indicating a potential upside of 28.71%. Given Crescent Capital BDC’s higher possible upside, analysts plainly believe Crescent Capital BDC is more favorable than Barings Bdc.
Summary
Barings Bdc beats Crescent Capital BDC on 11 of the 17 factors compared between the two stocks.
About Barings Bdc
Barings BDC, Inc. is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. It seeks to invest primarily in senior secured loans, first lien debt, unitranche, second lien debt, subordinated debt, equity co-investments and senior secured private debt investments in private middle-market companies that operate across a wide range of industries. It specializes in mezzanine, leveraged buyouts, management buyouts, ESOPs, change of control transactions, acquisition financings, growth financing, and recapitalizations in lower middle market, mature, and later stage companies. It invests in manufacturing and distribution; business services and technology; transportation and logistics; consumer product and services. It invests in United States. It invests in companies with EBITDA of $10 million to $75 million, typically in private equity sponsor backed.
About Crescent Capital BDC
Crescent Capital BDC, Inc. is as a business development company private equity / buyouts and loan fund. It specializes in directly investing. It specializes in middle market. The fund seeks to invest in United States.
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