VanEck Vectors Biotech ETF (NASDAQ:BBH) and Goldman Sachs BDC (NYSE:GSBD) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.
Institutional and Insider Ownership
28.1% of VanEck Vectors Biotech ETF shares are owned by institutional investors. Comparatively, 13.8% of Goldman Sachs BDC shares are owned by institutional investors. 0.3% of Goldman Sachs BDC shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Dividends
VanEck Vectors Biotech ETF pays an annual dividend of $0.61 per share and has a dividend yield of 0.3%. Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 9.3%. Goldman Sachs BDC pays out 90.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Goldman Sachs BDC has raised its dividend for 1 consecutive years. Goldman Sachs BDC is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for VanEck Vectors Biotech ETF and Goldman Sachs BDC, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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VanEck Vectors Biotech ETF | 0 | 0 | 0 | 0 | N/A |
Goldman Sachs BDC | 0 | 2 | 1 | 0 | 2.33 |
Goldman Sachs BDC has a consensus target price of $15.9167, indicating a potential downside of 17.91%. Given Goldman Sachs BDC's higher possible upside, analysts plainly believe Goldman Sachs BDC is more favorable than VanEck Vectors Biotech ETF.
Valuation and Earnings
This table compares VanEck Vectors Biotech ETF and Goldman Sachs BDC's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
VanEck Vectors Biotech ETF | N/A | N/A | N/A | N/A | N/A |
Goldman Sachs BDC | $147.26 million | 13.38 | $36.15 million | $1.98 | 9.79 |
Goldman Sachs BDC has higher revenue and earnings than VanEck Vectors Biotech ETF.
Profitability
This table compares VanEck Vectors Biotech ETF and Goldman Sachs BDC's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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VanEck Vectors Biotech ETF | N/A | N/A | N/A |
Goldman Sachs BDC | 9.56% | 11.79% | 4.83% |
Volatility and Risk
VanEck Vectors Biotech ETF has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Goldman Sachs BDC has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.
Summary
Goldman Sachs BDC beats VanEck Vectors Biotech ETF on 10 of the 12 factors compared between the two stocks.