Head to Head Analysis: Main Street Capital (NYSE:MAIN) & Crescent Capital BDC (NASDAQ:CCAP)

Crescent Capital BDC (NASDAQ:CCAP) and Main Street Capital (NYSE:MAIN) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Valuation & Earnings

This table compares Crescent Capital BDC and Main Street Capital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crescent Capital BDC	$197.36 million	2.70	$73.65 million	$0.98	14.69
Main Street Capital	$541.03 million	10.00	$508.08 million	$6.03	10.01

Main Street Capital has higher revenue and earnings than Crescent Capital BDC. Main Street Capital is trading at a lower price-to-earnings ratio than Crescent Capital BDC, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Crescent Capital BDC and Main Street Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crescent Capital BDC	1	1	3	1	2.67
Main Street Capital	0	7	4	0	2.36

Crescent Capital BDC presently has a consensus target price of $16.38, suggesting a potential upside of 13.72%. Main Street Capital has a consensus target price of $62.75, suggesting a potential upside of 3.93%. Given Crescent Capital BDC’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Crescent Capital BDC is more favorable than Main Street Capital.

Insider and Institutional Ownership

49.5% of Crescent Capital BDC shares are held by institutional investors. Comparatively, 20.3% of Main Street Capital shares are held by institutional investors. 1.1% of Crescent Capital BDC shares are held by company insiders. Comparatively, 4.0% of Main Street Capital shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Crescent Capital BDC and Main Street Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crescent Capital BDC	20.84%	9.76%	4.30%
Main Street Capital	95.59%	12.39%	6.77%

Dividends

Crescent Capital BDC pays an annual dividend of $1.68 per share and has a dividend yield of 11.7%. Main Street Capital pays an annual dividend of $3.12 per share and has a dividend yield of 5.2%. Crescent Capital BDC pays out 171.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Main Street Capital pays out 51.7% of its earnings in the form of a dividend. Crescent Capital BDC has increased its dividend for 1 consecutive years and Main Street Capital has increased its dividend for 4 consecutive years.

Volatility & Risk

Crescent Capital BDC has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Main Street Capital has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.

Summary

Main Street Capital beats Crescent Capital BDC on 12 of the 18 factors compared between the two stocks.

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.

About Main Street Capital

Main Street Capital Corporation is a business development company specializes in equity capital to lower middle market companies. The firm specializing in recapitalizations, management buyouts, refinancing, family estate planning, management buyouts, refinancing, industry consolidation, mature, later stage emerging growth. The firm also provides debt capital to middle market companies for acquisitions, management buyouts, growth financings, recapitalizations, and refinancing. The firm seeks to partner with entrepreneurs, business owners and management teams and generally provides “one stop” financing alternatives within its lower middle market portfolio. It prefers to invest in air freight and logistics, auto components, building products, chemicals, commercial services, computers, construction and engineering, consumer finance, consumer services, electronic equipment, energy equipment and services, financial services, health care equipment, health care providers, hotels, restaurants, and leisure, internet software and services, IT Services, machinery, oil, gas and consumable fuels, paper and forest products, professional and industrial services, road and rail, software, specialty retail, telecommunication, consumer discretionary, energy, materials, technology, and transportation. The firm typically invests in lower middle market companies generally with annual revenues between $10 million and $150 million. It prefers to invest in ranging between $5 million and $100 million in equity investment and enterprise value in ranging between $3 million and $20 million. The firm typically prefers to invest in the range of $5 million and $150 million per transaction in debt investment value and in the range of $3 million and $75 million in annual EBITDA in between $3 million and $25 million in lower middle market $5 million and $75 million in credit solution. The firm’s middle market debt investments are made in businesses that are generally larger in size than its lower middle market portfolio companies. It takes 5 percent minority and up to 50 percent majority equity investments. Main Street Capital Corporation was founded in 2007 and is based in Houston, Texas with an additional office in Chojnów, Poland.