Blackstone Secured Lending Fund (NYSE:BXSL – Get Free Report) and Crescent Capital BDC (NASDAQ:CCAP – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.
Profitability
This table compares Blackstone Secured Lending Fund and Crescent Capital BDC’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Blackstone Secured Lending Fund | 21.51% | 11.86% | 5.10% |
| Crescent Capital BDC | -2.02% | 9.02% | 3.82% |
Dividends
Blackstone Secured Lending Fund pays an annual dividend of $3.08 per share and has a dividend yield of 12.8%. Crescent Capital BDC pays an annual dividend of $1.36 per share and has a dividend yield of 14.5%. Blackstone Secured Lending Fund pays out 256.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Crescent Capital BDC pays out -1,511.1% of its earnings in the form of a dividend. Crescent Capital BDC has raised its dividend for 1 consecutive years. Crescent Capital BDC is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares Blackstone Secured Lending Fund and Crescent Capital BDC”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Blackstone Secured Lending Fund | $1.42 billion | 3.95 | $563.46 million | $1.20 | 20.07 |
| Crescent Capital BDC | $167.29 million | 2.07 | $34.51 million | ($0.09) | -104.22 |
Blackstone Secured Lending Fund has higher revenue and earnings than Crescent Capital BDC. Crescent Capital BDC is trading at a lower price-to-earnings ratio than Blackstone Secured Lending Fund, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Blackstone Secured Lending Fund has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, Crescent Capital BDC has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.
Institutional & Insider Ownership
36.5% of Blackstone Secured Lending Fund shares are owned by institutional investors. Comparatively, 49.5% of Crescent Capital BDC shares are owned by institutional investors. 0.1% of Blackstone Secured Lending Fund shares are owned by insiders. Comparatively, 1.2% of Crescent Capital BDC shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings for Blackstone Secured Lending Fund and Crescent Capital BDC, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Blackstone Secured Lending Fund | 1 | 7 | 4 | 0 | 2.25 |
| Crescent Capital BDC | 0 | 6 | 1 | 0 | 2.14 |
Blackstone Secured Lending Fund presently has a consensus target price of $24.83, suggesting a potential upside of 3.11%. Crescent Capital BDC has a consensus target price of $12.25, suggesting a potential upside of 30.60%. Given Crescent Capital BDC’s higher probable upside, analysts clearly believe Crescent Capital BDC is more favorable than Blackstone Secured Lending Fund.
Summary
Blackstone Secured Lending Fund beats Crescent Capital BDC on 10 of the 17 factors compared between the two stocks.
About Blackstone Secured Lending Fund
Blackstone Secured Lending Fund is business development company and a Delaware statutory trust formed on March 26, 2018, and structured as an externally managed, non-diversified closed-end investment Fund. On October 26, 2018, the fund elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940, as amended (the 1940 Act). In addition, the Fund elected to be treated for U.S. federal income tax purposes, as a regulated investment company (RIC), as defined under Subchapter M of the Internal Revenue Code of 1986, as amended (the Code). The fund also intends to continue to comply with the requirements prescribed by the Code in order to maintain tax treatment as a RIC. The fund's investment objectives are to generate current income and, to a lesser extent, long-term capital appreciation. The Fund seeks to achieve its investment objective primarily through originated loans, equity and other securities, including syndicated loans, of private U.S. companies, specifically small and middle market companies, typically in the form of first lien senior secured and unitranche loans (including first out/last out loans), and to a lesser extent, second lien, third lien, unsecured and subordinated loans and other debt and equity securities.
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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