GBDC vs. PSEC, CSWC, TSLX, NMFC, AVAL, SITC, HTGC, NSA, CNO, and CLSK
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), Sixth Street Specialty Lending (TSLX), New Mountain Finance (NMFC), Grupo Aval Acciones y Valores (AVAL), SITE Centers (SITC), Hercules Capital (HTGC), National Storage Affiliates Trust (NSA), CNO Financial Group (CNO), and CleanSpark (CLSK). 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 superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, media sentiment, community ranking, risk, institutional ownership and earnings.
Prospect Capital pays an annual dividend of $0.72 per share and has a dividend yield of 13.3%. Golub Capital BDC pays an annual dividend of $1.56 per share and has a dividend yield of 9.1%. 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. Prospect Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
9.1% of Prospect Capital shares are held by institutional investors. Comparatively, 42.4% of Golub Capital BDC shares are held by institutional investors. 26.7% of Prospect Capital shares are held by insiders. Comparatively, 0.0% of Golub Capital BDC shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
In the previous week, Golub Capital BDC had 12 more articles in the media than Prospect Capital. MarketBeat recorded 14 mentions for Golub Capital BDC and 2 mentions for Prospect Capital. Prospect Capital's average media sentiment score of 1.16 beat Golub Capital BDC's score of 0.95 indicating that Golub Capital BDC is being referred to more favorably in the news media.
Prospect Capital currently has a consensus target price of $5.75, indicating a potential upside of 6.48%. Golub Capital BDC has a consensus target price of $16.40, indicating a potential downside of 4.15%. Given Golub Capital BDC's higher probable upside, research analysts clearly believe Prospect Capital is more favorable than Golub Capital BDC.
Prospect Capital has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Golub Capital BDC has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.
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.
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 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 52.38% of users gave Prospect Capital an outperform vote.
Summary
Golub Capital BDC beats Prospect Capital on 11 of the 20 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.
This 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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