Golub Capital BDC (GBDC) Competitors

Golub Capital BDC (NASDAQ:GBDC) and Ares Capital (NASDAQ:ARCC) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings, media sentiment and analyst recommendations.

Does the media refer more to GBDC or ARCC?

In the previous week, Ares Capital had 13 more articles in the media than Golub Capital BDC. MarketBeat recorded 19 mentions for Ares Capital and 6 mentions for Golub Capital BDC. Golub Capital BDC's average media sentiment score of 1.50 beat Ares Capital's score of 1.13 indicating that Golub Capital BDC is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Golub Capital BDC	5 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Ares Capital	13 Very Positive mention(s)	2 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is GBDC or ARCC more profitable?

Ares Capital has a net margin of 43.50% compared to Golub Capital BDC's net margin of 35.50%. Ares Capital's return on equity of 11.05% beat Golub Capital BDC's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Golub Capital BDC	35.50%	10.59%	4.86%
Ares Capital	43.50%	11.05%	5.25%

Do insiders & institutionals have more ownership in GBDC or ARCC?

42.4% of Golub Capital BDC shares are held by institutional investors. Comparatively, 27.4% of Ares Capital shares are held by institutional investors. 3.6% of Golub Capital BDC shares are held by insiders. Comparatively, 0.5% of Ares Capital shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Do analysts prefer GBDC or ARCC?

Golub Capital BDC presently has a consensus price target of $15.50, indicating a potential upside of 4.91%. Ares Capital has a consensus price target of $22.00, indicating a potential downside of 1.70%. Given Golub Capital BDC's higher possible upside, analysts plainly believe Golub Capital BDC is more favorable than Ares Capital.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golub Capital BDC	0 Sell rating(s)	1 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.75
Ares Capital	0 Sell rating(s)	3 Hold rating(s)	5 Buy rating(s)	1 Strong Buy rating(s)	2.78

Which has higher valuation and earnings, GBDC or ARCC?

Ares Capital has higher revenue and earnings than Golub Capital BDC. Ares 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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Golub Capital BDC	$300.65M	13.09	$273.79M	$1.13	13.08
Ares Capital	$2.99B	5.20	$1.52B	$2.05	10.92

Which has more volatility & risk, GBDC or ARCC?

Golub Capital BDC has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, Ares Capital has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.

Is GBDC or ARCC a better dividend stock?

Golub Capital BDC pays an annual dividend of $1.56 per share and has a dividend yield of 10.6%. Ares Capital pays an annual dividend of $1.92 per share and has a dividend yield of 8.6%. Golub Capital BDC pays out 138.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ares Capital pays out 93.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Ares Capital beats Golub Capital BDC on 12 of the 19 factors compared between the two stocks.