Analyzing Barings BDC (NYSE:BBDC) and Blackstone Group (NYSE:BX)
Barings BDC (NYSE:BBDC) and Blackstone Group (NYSE:BX) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.
Barings BDC pays an annual dividend of $0.52 per share and has a dividend yield of 5.4%. Blackstone Group pays an annual dividend of $1.92 per share and has a dividend yield of 4.2%. Blackstone Group pays out 85.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Barings BDC and Blackstone Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Barings BDC and Blackstone Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Barings BDC||$80.22 million||6.16||-$114.28 million||N/A||N/A|
|Blackstone Group||$6.83 billion||4.47||$1.54 billion||$2.26||20.43|
Blackstone Group has higher revenue and earnings than Barings BDC.
This is a breakdown of recent recommendations and price targets for Barings BDC and Blackstone Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Barings BDC presently has a consensus target price of $11.20, indicating a potential upside of 16.10%. Blackstone Group has a consensus target price of $49.00, indicating a potential upside of 6.13%. Given Barings BDC’s stronger consensus rating and higher possible upside, research analysts clearly believe Barings BDC is more favorable than Blackstone Group.
Volatility and Risk
Barings BDC has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Blackstone Group has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.
Institutional & Insider Ownership
40.1% of Barings BDC shares are owned by institutional investors. Comparatively, 45.5% of Blackstone Group shares are owned by institutional investors. 0.3% of Barings BDC shares are owned by insiders. Comparatively, 1.0% of Blackstone Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Blackstone Group beats Barings BDC on 9 of the 14 factors compared between the two stocks.
Barings BDC Company Profile
Barings BDC, Inc. (NYSE:BBDC) is a business development company specializing in private equity and mezzanine investments. It focuses on leveraged buyouts, management buyouts, ESOPs, change of control transactions, acquisition financings, growth financing, and recapitalizations in lower middle market, mature, and later stage companies. The firm prefers to make investments in many business sectors including manufacturing, distribution, transportation, energy, communications, health services, restaurants, media, and others. It primarily invests in companies located throughout the United States, with an emphasis on the Southeast and Midatlantic. The firm makes equity investments between $1 million and $25 million and debt investments between $5 million and $30 million per transaction, in companies having annual revenues between $20 million and $200 million and EBITDA between $3 million and $35 million and can also co-invest. It typically makes investments between $5 million and $35 million. It primarily invests in senior subordinated debt securities secured by second lien security interests in portfolio company assets, coupled with equity interests. The firm also invests in senior debt securities secured by first lien security interests in portfolio companies. Triangle Capital Corporation was incorporated on October 10, 2006 and is based in Raleigh, North Carolina.
Blackstone Group Company Profile
The Blackstone Group L.P. is a publicly owned alternative asset manager. The firm also provides capital markets services to its clients. It provides its services to public and corporate pension funds, academic, cultural, and charitable organizations, retirees, sovereign wealth funds, and institutional and individual investors. The firm manages separate client focused portfolios for its clients. It also launches and manages private equity funds, real estate funds, funds of hedge funds, collateralized loan obligations, real estate investment trusts, and credit-focused funds for its clients. The firm invests in private equity, public equity, fixed income, and alternative investment markets across the globe. The Blackstone Group L.P. was founded in 1985 and is based in New York City, New York with additional offices in London, United Kingdom, Hong Kong, Baltimore, Maryland, Beijing, China, Copenhagen, Denmark, Dusseldorf, Germany, Los Angeles, California, Paris, France, San Francisco, California, Sao Paulo, Brazil, Singapore, Sydney, Australia, and Tokyo, Japan.
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