Goldman Sachs BDC (NYSE: GSBD) is one of 52 public companies in the “Investment Management & Fund Operators” industry, but how does it contrast to its competitors? We will compare Goldman Sachs BDC to similar businesses based on the strength of its valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Goldman Sachs BDC and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Goldman Sachs BDC 32.19% 11.34% 6.65%
Goldman Sachs BDC Competitors -238.17% -0.97% 4.27%

Dividends

Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 8.1%. Goldman Sachs BDC pays out -818.2% of its earnings in the form of a dividend. As a group, “Investment Management & Fund Operators” companies pay a dividend yield of 2.5% and pay out 46.4% of their earnings in the form of a dividend. Goldman Sachs BDC is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

36.5% of Goldman Sachs BDC shares are held by institutional investors. Comparatively, 62.3% of shares of all “Investment Management & Fund Operators” companies are held by institutional investors. 0.3% of Goldman Sachs BDC shares are held by insiders. Comparatively, 10.5% of shares of all “Investment Management & Fund Operators” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Goldman Sachs BDC and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Goldman Sachs BDC $125.11 million $40.65 million -101.18
Goldman Sachs BDC Competitors $6.06 billion $896.42 million 660.03

Goldman Sachs BDC’s competitors have higher revenue and earnings than Goldman Sachs BDC. Goldman Sachs 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.

Analyst Ratings

This is a summary of recent ratings for Goldman Sachs BDC and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Goldman Sachs BDC 0 4 3 0 2.43
Goldman Sachs BDC Competitors 292 1788 1894 57 2.43

Goldman Sachs BDC presently has a consensus target price of $22.60, suggesting a potential upside of 1.53%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 8.03%. Given Goldman Sachs BDC’s competitors higher possible upside, analysts plainly believe Goldman Sachs BDC has less favorable growth aspects than its competitors.

Summary

Goldman Sachs BDC competitors beat Goldman Sachs BDC on 8 of the 14 factors compared.

Goldman Sachs BDC Company Profile

Goldman Sachs BDC, Inc. is a closed-end management investment company. The Company is a specialty finance company, which is focused on lending to middle-market companies. The Company’s investment objective is to generate current income and, to a lesser extent, capital appreciation primarily through direct originations of secured debt, including first lien, including first lien, unitranche, including last out portions of such loans, and second lien debt, and unsecured debt, including mezzanine debt, as well as through select equity investments. The Company invests primarily in the United States middle-market companies. The Company invests in illiquid securities, including debt and equity investments, of middle-market companies. As of December 31, 2016, its portfolio included first lien/senior secured debt, first lien/last-out unitranche, second lien/senior secured debt, unsecured debt, preferred stock, common stock, and investment funds and vehicles.

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