GBDC vs. PSEC, CSWC, NMFC, UCBI, BHF, BANF, IIPR, FBP, BXMT, and MCY
Should you be buying Golub Capital BDC stock or one of its competitors? The main competitors of Golub Capital BDC include Prospect Capital (PSEC), Capital Southwest (CSWC), New Mountain Finance (NMFC), United Community Banks (UCBI), Brighthouse Financial (BHF), BancFirst (BANF), Innovative Industrial Properties (IIPR), First BanCorp. (FBP), Blackstone Mortgage Trust (BXMT), and Mercury General (MCY). These companies are all part of the "finance" sector.
Prospect Capital (NASDAQ:PSEC) and Golub Capital BDC (NASDAQ:GBDC) are both mid-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, media sentiment, dividends, valuation, community ranking, analyst recommendations, risk and earnings.
9.1% of Prospect Capital shares are owned by institutional investors. Comparatively, 42.4% of Golub Capital BDC shares are owned by institutional investors. 26.7% of Prospect Capital shares are owned by insiders. Comparatively, 2.7% of Golub Capital BDC shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
In the previous week, Golub Capital BDC had 4 more articles in the media than Prospect Capital. MarketBeat recorded 6 mentions for Golub Capital BDC and 2 mentions for Prospect Capital. Golub Capital BDC's average media sentiment score of 1.48 beat Prospect Capital's score of 0.72 indicating that Prospect Capital is being referred to more favorably in the media.
Golub Capital BDC has lower revenue, but higher earnings than Prospect Capital. Prospect Capital is trading at a lower price-to-earnings ratio than Golub Capital BDC, indicating that it is currently the more affordable of the two stocks.
Prospect Capital has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Golub Capital BDC has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.
Prospect Capital pays an annual dividend of $0.72 per share and has a dividend yield of 13.8%. Golub Capital BDC pays an annual dividend of $1.56 per share and has a dividend yield of 9.2%. Prospect Capital pays out -360.0% of its earnings in the form of a dividend. Golub Capital BDC pays out 85.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Golub Capital BDC has raised its dividend for 4 consecutive years. Prospect Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
Golub Capital BDC has a net margin of 48.94% compared to Golub Capital BDC's net margin of -1.47%. Golub Capital BDC's return on equity of 13.48% beat Prospect Capital's return on equity.
Prospect Capital received 19 more outperform votes than Golub Capital BDC when rated by MarketBeat users. However, 56.60% of users gave Golub Capital BDC an outperform vote while only 52.30% of users gave Prospect Capital an outperform vote.
Prospect Capital currently has a consensus price target of $5.75, suggesting a potential upside of 9.94%. Golub Capital BDC has a consensus price target of $16.40, suggesting a potential downside of 2.90%. Given Golub Capital BDC's higher possible upside, equities research analysts clearly believe Prospect Capital is more favorable than Golub Capital BDC.
Summary
Golub Capital BDC beats Prospect Capital on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding GBDC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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