Critical Analysis: Palmer Square Capital BDC (NYSE:PSBD) and Site Centers (NYSE:SITC)

Palmer Square Capital BDC (NYSE:PSBD) and Site Centers (NYSE:SITC) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Palmer Square Capital BDC and Site Centers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palmer Square Capital BDC	1	4	0	0	1.80
Site Centers	1	3	0	0	1.75

Palmer Square Capital BDC presently has a consensus target price of $10.75, indicating a potential upside of 2.87%. Site Centers has a consensus target price of $6.75, indicating a potential upside of 122.04%. Given Site Centers’ higher possible upside, analysts plainly believe Site Centers is more favorable than Palmer Square Capital BDC.

Valuation and Earnings

This table compares Palmer Square Capital BDC and Site Centers”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Palmer Square Capital BDC	$124.39 million	2.57	-$3.17 million	($0.99)	-10.56
Site Centers	$113.49 million	1.41	$177.86 million	$2.41	1.26

Site Centers has lower revenue, but higher earnings than Palmer Square Capital BDC. Palmer Square Capital BDC is trading at a lower price-to-earnings ratio than Site Centers, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

6.5% of Palmer Square Capital BDC shares are held by institutional investors. Comparatively, 88.7% of Site Centers shares are held by institutional investors. 1.1% of Palmer Square Capital BDC shares are held by insiders. Comparatively, 0.2% of Site Centers shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Palmer Square Capital BDC has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Site Centers has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Palmer Square Capital BDC	-26.73%	11.22%	4.15%
Site Centers	219.18%	40.56%	27.81%

Summary

Site Centers beats Palmer Square Capital BDC on 9 of the 13 factors compared between the two stocks.

About Palmer Square Capital BDC

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.

About Site Centers

SITE Centers is an owner and manager of open-air shopping centers located in suburban, high household income communities. The Company is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol SITC.