Golub Capital BDC (NASDAQ:GBDC – Get Free Report) and Goldman Sachs BDC (NYSE:GSBD – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.
Dividends
Golub Capital BDC pays an annual dividend of $1.32 per share and has a dividend yield of 10.5%. Goldman Sachs BDC pays an annual dividend of $1.28 per share and has a dividend yield of 14.3%. Golub Capital BDC pays out 203.1% 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 pays out 246.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Profitability
This table compares Golub Capital BDC and Goldman Sachs BDC’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Golub Capital BDC | 21.45% | 9.91% | 4.39% |
| Goldman Sachs BDC | 17.19% | 11.04% | 4.62% |
Institutional & Insider Ownership
42.4% of Golub Capital BDC shares are owned by institutional investors. Comparatively, 28.7% of Goldman Sachs BDC shares are owned by institutional investors. 1.4% of Golub Capital BDC shares are owned by insiders. Comparatively, 0.1% of Goldman Sachs BDC shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
Golub Capital BDC has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, Goldman Sachs BDC has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings for Golub Capital BDC and Goldman Sachs BDC, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Golub Capital BDC | 0 | 2 | 4 | 1 | 2.86 |
| Goldman Sachs BDC | 3 | 3 | 0 | 1 | 1.86 |
Golub Capital BDC presently has a consensus price target of $13.90, suggesting a potential upside of 10.32%. Goldman Sachs BDC has a consensus price target of $8.75, suggesting a potential downside of 2.07%. Given Golub Capital BDC’s stronger consensus rating and higher possible upside, analysts plainly believe Golub Capital BDC is more favorable than Goldman Sachs BDC.
Earnings & Valuation
This table compares Golub Capital BDC and Goldman Sachs BDC”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Golub Capital BDC | $203.39 million | 16.09 | $376.65 million | $0.65 | 19.38 |
| Goldman Sachs BDC | $365.57 million | 2.75 | $119.27 million | $0.52 | 17.18 |
Golub Capital BDC has higher earnings, but lower revenue than Goldman Sachs BDC. Goldman Sachs BDC is trading at a lower price-to-earnings ratio than Golub Capital BDC, indicating that it is currently the more affordable of the two stocks.
Summary
Golub Capital BDC beats Goldman Sachs BDC on 11 of the 16 factors compared between the two stocks.
About Golub Capital BDC
Golub Capital BDC, Inc. (GBDC) is a business development company and operates as an externally managed closed-end non-diversified management investment company. It invests in debt and minority equity investments in middle-market companies that are, in most cases, sponsored by private equity investors. It typically invests in diversified consumer services, automobiles, healthcare technology, insurance, health care equipment and supplies, hotels, restaurants and leisure, healthcare providers and services, IT services and specialty retails. It seeks to invest in the United States. It primarily invests in first lien traditional senior debt, first lien one stop, junior debt and equity, senior secured, one stop, unitranche, second lien, subordinated and mezzanine loans of middle-market companies, and warrants.
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.
Receive News & Ratings for Golub Capital BDC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Golub Capital BDC and related companies with MarketBeat.com's FREE daily email newsletter.
