Head to Head Survey: Crescent Capital BDC (NASDAQ:CCAP) versus UBS Group (NYSE:UBS)

Crescent Capital BDC (NASDAQ:CCAPGet Free Report) and UBS Group (NYSE:UBSGet Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Insider & Institutional Ownership

49.5% of Crescent Capital BDC shares are held by institutional investors. 1.2% of Crescent Capital BDC shares are held by insiders. Comparatively, 1.0% of UBS Group shares are held 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Crescent Capital BDC and UBS Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Crescent Capital BDC 0 6 1 0 2.14
UBS Group 2 5 4 0 2.18

Crescent Capital BDC presently has a consensus price target of $12.62, suggesting a potential upside of 27.01%. UBS Group has a consensus price target of $60.30, suggesting a potential upside of 13.87%. Given Crescent Capital BDC’s higher probable upside, equities analysts clearly believe Crescent Capital BDC is more favorable than UBS Group.

Profitability

This table compares Crescent Capital BDC and UBS Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Crescent Capital BDC -2.02% 9.02% 3.82%
UBS Group 13.10% 10.50% 0.57%

Risk and Volatility

Crescent Capital BDC has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, UBS Group has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Dividends

Crescent Capital BDC pays an annual dividend of $1.36 per share and has a dividend yield of 13.7%. UBS Group pays an annual dividend of $0.35 per share and has a dividend yield of 0.7%. Crescent Capital BDC pays out -1,511.1% of its earnings in the form of a dividend. UBS Group pays out 11.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Crescent Capital BDC has increased its dividend for 1 consecutive years and UBS Group has increased its dividend for 5 consecutive years. Crescent Capital BDC is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Crescent Capital BDC and UBS Group”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Crescent Capital BDC $7.13 million 51.37 $34.51 million ($0.09) -110.44
UBS Group $50.90 billion 3.25 $7.77 billion $2.94 18.01

UBS Group has higher revenue and earnings than Crescent Capital BDC. Crescent Capital BDC is trading at a lower price-to-earnings ratio than UBS Group, indicating that it is currently the more affordable of the two stocks.

Summary

UBS Group beats Crescent Capital BDC on 10 of the 17 factors compared between the two stocks.

About Crescent Capital BDC

(Get Free Report)

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.

About UBS Group

(Get Free Report)

UBS Group AG provides financial advice and solutions to private, institutional, and corporate clients worldwide. It operates through five divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, Investment Bank, and Non-core and Legacy. The company offers investment advice, estate and wealth planning, investing, corporate and banking, and investment management, as well as mortgage, securities-based, and structured lending solutions. It also provides personal banking products and services, such as deposits, credit and debit cards, and online and mobile banking, as well as lending, investments, retirement, and wealth management services; and corporate and institutional solutions, including equity and debt capital markets, syndicated and structured credit, private placements, leasing, traditional financing, and transaction banking solutions for payment and cash management services, trade and export finance, and global custody solutions. In addition, the company offers equities, fixed income, hedge funds, real estate and private markets, indexed and alternative beta strategies, asset allocation and currency investment strategies, customized multi-asset solutions, advisory and fiduciary services, and multi-manager hedge fund solutions and advisory services. Further, it advises clients on strategic business opportunities and helps them raise capital to fund their activities; enables its clients to buy, sell, and finance securities on capital markets and to manage their risks and liquidity; distributes, trades in, finances, and clears cash equities and equity-linked products; structures, originates, and distributes new equity and equity-linked issues; and originates, distributes, manages risk, and provides liquidity in foreign exchange, rates, credit and precious metals. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is headquartered in Zurich, Switzerland.

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