Raymond James Financial (NYSE:RJF – Get Free Report) and Crescent Capital BDC (NASDAQ:CCAP – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.
Profitability
This table compares Raymond James Financial and Crescent Capital BDC’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Raymond James Financial | 13.50% | 19.52% | 2.69% |
| Crescent Capital BDC | -2.02% | 9.02% | 3.82% |
Volatility and Risk
Raymond James Financial has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Crescent Capital BDC has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.
Insider and Institutional Ownership
83.8% of Raymond James Financial shares are held by institutional investors. Comparatively, 49.5% of Crescent Capital BDC shares are held by institutional investors. 0.6% of Raymond James Financial 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.
Earnings & Valuation
This table compares Raymond James Financial 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 | |
| Raymond James Financial | $15.53 billion | 2.02 | $2.37 billion | $11.92 | 13.66 |
| Crescent Capital BDC | $7.13 million | 48.47 | $34.51 million | ($0.09) | -104.22 |
Raymond James Financial has higher revenue and earnings than Crescent Capital BDC. Crescent Capital BDC is trading at a lower price-to-earnings ratio than Raymond James Financial, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Raymond James Financial and Crescent Capital BDC, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Raymond James Financial | 0 | 9 | 6 | 0 | 2.40 |
| Crescent Capital BDC | 0 | 6 | 1 | 0 | 2.14 |
Raymond James Financial presently has a consensus target price of $181.46, indicating a potential upside of 11.42%. Crescent Capital BDC has a consensus target price of $12.25, indicating a potential upside of 30.60%. Given Crescent Capital BDC’s higher possible upside, analysts clearly believe Crescent Capital BDC is more favorable than Raymond James Financial.
Dividends
Raymond James Financial pays an annual dividend of $2.16 per share and has a dividend yield of 1.3%. Crescent Capital BDC pays an annual dividend of $1.36 per share and has a dividend yield of 14.5%. Raymond James Financial pays out 18.1% of its earnings in the form of a dividend. Crescent Capital BDC pays out -1,511.1% 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. Raymond James Financial has raised its dividend for 3 consecutive years and 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 lower payout ratio.
Summary
Raymond James Financial beats Crescent Capital BDC on 11 of the 17 factors compared between the two stocks.
About Raymond James Financial
Raymond James Financial, Inc., a financial holding company, through its subsidiaries, engages in the underwriting, distribution, trading, and brokerage of equity and debt securities, and the sale of mutual funds and other investment products in the United States, Canada, Europe, and internationally. The company operates through Private Client Group, Capital Markets, Asset Management, RJ Bank, and Other segments. The Private Client Group segment provides securities brokerage services, including the sale of equities, mutual funds, fixed income products, and insurance products to their individual clients; and borrowing and lending of securities to and from other broker-dealers, financial institutions, and other counterparties. The Capital Markets segment offers securities brokerage, trading, and research services to institutions with a focus on sale of the United States and Canadian equities and fixed income products; and manages and participates in underwritings, merger and acquisition services, and public finance activities. The Asset Management segment engages in the operations of Eagle, the Eagle Family of Funds, Cougar, the asset management operations of Raymond James & Associates, trust services of Raymond James Trust, and other fee-based asset management programs. The RJ Bank segment provides corporate loans, SBL, tax-exempt loans, and residential loans. The Other segment engages in private equity activities, including various direct and third party private equity investments; and private equity funds. Raymond James Financial, Inc. was founded in 1962 and is based in St. Petersburg, Florida.
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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