Analyzing Palmer Square Capital BDC (PSBD) & Its Competitors

Palmer Square Capital BDC (NYSE:PSBD) is one of 1,744 publicly-traded companies in the “Capital Markets” industry, but how does it weigh in compared to its competitors? We will compare Palmer Square Capital BDC to similar companies based on the strength of its risk, valuation, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Dividends

Palmer Square Capital BDC pays an annual dividend of $1.44 per share and has a dividend yield of 14.6%. Palmer Square Capital BDC pays out -145.5% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 30.0% of their earnings in the form of a dividend. Palmer Square Capital BDC is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Palmer Square Capital BDC and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palmer Square Capital BDC	0	5	0	0	2.00
Palmer Square Capital BDC Competitors	5553	20126	22461	642	2.37

Palmer Square Capital BDC presently has a consensus price target of $10.50, indicating a potential upside of 6.37%. As a group, “Capital Markets” companies have a potential upside of 26.63%. Given Palmer Square Capital BDC’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Palmer Square Capital BDC has less favorable growth aspects than its competitors.

Volatility & Risk

Palmer Square Capital BDC has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Palmer Square Capital BDC’s competitors have a beta of 0.79, indicating that their average share price is 21% less volatile than the S&P 500.

Insider and Institutional Ownership

6.5% of Palmer Square Capital BDC shares are owned by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are owned by institutional investors. 1.1% of Palmer Square Capital BDC shares are owned by company insiders. Comparatively, 13.1% of shares of all “Capital Markets” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Palmer Square Capital BDC and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palmer Square Capital BDC	-18.27%	11.16%	4.07%
Palmer Square Capital BDC Competitors	318.48%	79.19%	3.72%

Valuation and Earnings

This table compares Palmer Square Capital BDC and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Palmer Square Capital BDC	$124.39 million	-$3.17 million	-9.97
Palmer Square Capital BDC Competitors	$2.20 billion	$397.86 million	17.53

Palmer Square Capital BDC’s competitors have higher revenue and earnings than Palmer Square Capital BDC. Palmer Square Capital BDC is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Palmer Square Capital BDC competitors beat Palmer Square Capital BDC on 11 of the 15 factors compared.

Palmer Square Capital BDC Company Profile

Palmer Square Capital BDC Inc. is an externally managed, non-diversified closed-end management investment company which primarily lends to and invests in corporate debt securities, including small to large private U.S. companies and has elected to be regulated as a business development company. Palmer Square Capital BDC Inc. is based in MISSION WOODS, Kan.