Barings Bdc (NYSE:BBDC – Get Free Report) and Gabelli Multimedia Trust (NYSE:GGT – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.
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, Gabelli Multimedia Trust has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.
Earnings and Valuation
This table compares Barings Bdc and Gabelli Multimedia Trust”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Barings Bdc | $279.21 million | 3.22 | $101.92 million | $0.85 | 10.10 |
| Gabelli Multimedia Trust | $43.32 million | 3.15 | N/A | N/A | N/A |
Barings Bdc has higher revenue and earnings than Gabelli Multimedia Trust.
Analyst Recommendations
This is a breakdown of recent ratings for Barings Bdc and Gabelli Multimedia Trust, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Barings Bdc | 0 | 4 | 1 | 0 | 2.20 |
| Gabelli Multimedia Trust | 0 | 0 | 0 | 0 | 0.00 |
Barings Bdc currently has a consensus price target of $9.50, indicating a potential upside of 10.66%. Given Barings Bdc’s stronger consensus rating and higher possible upside, analysts plainly believe Barings Bdc is more favorable than Gabelli Multimedia Trust.
Dividends
Barings Bdc pays an annual dividend of $1.04 per share and has a dividend yield of 12.1%. Gabelli Multimedia Trust pays an annual dividend of $0.88 per share and has a dividend yield of 21.5%. Barings Bdc pays out 122.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Barings Bdc has raised its dividend for 3 consecutive years.
Insider and Institutional Ownership
44.1% of Barings Bdc shares are owned by institutional investors. Comparatively, 10.6% of Gabelli Multimedia Trust shares are owned by institutional investors. 0.6% of Barings Bdc shares are owned by insiders. Comparatively, 8.0% of Gabelli Multimedia Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Barings Bdc and Gabelli Multimedia Trust’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% |
| Gabelli Multimedia Trust | N/A | N/A | N/A |
Summary
Barings Bdc beats Gabelli Multimedia Trust on 10 of the 14 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 Gabelli Multimedia Trust
The Gabelli Multimedia Trust Inc. is a closed-ended equity mutual fund launched by GAMCO Investors, Inc. It is managed by Gabelli Funds LLC. The fund invests in the public equity markets across the globe. It invests in stocks, convertible securities, preferred stock, options, and warrants of companies operating across global telecommunications, media, publishing, and entertainment industries. The fund also invests in companies participating in emerging technological advances in interactive services and products. It invests in stocks of companies across market capitalizations. The fund benchmarks the performance of its portfolio against the S&P 500 Index and MSCI World Free Index. It was formerly known as Gabelli Global Multimedia Trust Inc. The Gabelli Multimedia Trust Inc. was formed on November 15, 1994 and is domiciled in the United States.
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