Goldman Sachs BDC (NYSE: GSBD) is one of 56 public companies in the “Investment Management & Fund Operators” industry, but how does it weigh in compared to its peers? We will compare Goldman Sachs BDC to related companies based on the strength of its profitability, earnings, risk, analyst recommendations, dividends, valuation and institutional ownership.

Dividends

Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 8.2%. Goldman Sachs BDC pays out 160.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Investment Management & Fund Operators” companies pay a dividend yield of 2.5% and pay out 45.6% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Goldman Sachs BDC and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Goldman Sachs BDC $125.11 million $40.65 million 19.71
Goldman Sachs BDC Competitors $6.06 billion $896.42 million 589.09

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

Profitability

This table compares Goldman Sachs BDC and its peers’ 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 -218.22% -1.27% 3.24%

Risk and Volatility

Goldman Sachs BDC has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Goldman Sachs BDC’s peers have a beta of 1.42, suggesting that their average stock price is 42% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Goldman Sachs BDC and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Goldman Sachs BDC 0 4 3 0 2.43
Goldman Sachs BDC Competitors 309 1816 1921 58 2.42

Goldman Sachs BDC currently has a consensus target price of $22.60, suggesting a potential upside of 2.36%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 9.47%. Given Goldman Sachs BDC’s peers higher probable upside, analysts plainly believe Goldman Sachs BDC has less favorable growth aspects than its peers.

Insider and Institutional Ownership

36.6% of Goldman Sachs BDC shares are owned by institutional investors. Comparatively, 62.3% of shares of all “Investment Management & Fund Operators” companies are owned by institutional investors. 0.3% of Goldman Sachs BDC shares are owned by company insiders. Comparatively, 10.5% of shares of all “Investment Management & Fund Operators” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Goldman Sachs BDC peers beat Goldman Sachs BDC on 10 of the 15 factors compared.

About Goldman Sachs BDC

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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