Sculptor Capital Management (NYSE:SCU) and Barings BDC (NYSE:BBDC) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.
Dividends
Sculptor Capital Management pays an annual dividend of $9.40 per share and has a dividend yield of 44.4%. Barings BDC pays an annual dividend of $0.68 per share and has a dividend yield of 6.8%. Sculptor Capital Management pays out 302.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Barings BDC pays out 111.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Barings BDC has raised its dividend for 1 consecutive years.
Valuation & Earnings
This table compares Sculptor Capital Management and Barings BDC's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Sculptor Capital Management | $597.35 million | 1.96 | $7.05 million | $3.11 | 6.80 |
Barings BDC | $75.65 million | 6.30 | $58.19 million | $0.61 | 16.30 |
Barings BDC has lower revenue, but higher earnings than Sculptor Capital Management. Sculptor Capital Management is trading at a lower price-to-earnings ratio than Barings BDC, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Sculptor Capital Management has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500. Comparatively, Barings BDC has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Sculptor Capital Management and Barings BDC, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Sculptor Capital Management | 0 | 1 | 1 | 0 | 2.50 |
Barings BDC | 0 | 0 | 6 | 0 | 3.00 |
Sculptor Capital Management currently has a consensus price target of $22.3750, indicating a potential upside of 5.74%. Barings BDC has a consensus price target of $9.25, indicating a potential downside of 6.94%. Given Sculptor Capital Management's higher possible upside, equities research analysts clearly believe Sculptor Capital Management is more favorable than Barings BDC.
Profitability
This table compares Sculptor Capital Management and Barings BDC's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Sculptor Capital Management | 1.22% | 74.87% | 9.89% |
Barings BDC | -5.76% | 5.71% | 2.50% |
Insider & Institutional Ownership
20.3% of Sculptor Capital Management shares are owned by institutional investors. Comparatively, 74.4% of Barings BDC shares are owned by institutional investors. 9.4% of Sculptor Capital Management shares are owned by insiders. Comparatively, 0.2% of Barings BDC shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Sculptor Capital Management beats Barings BDC on 10 of the 17 factors compared between the two stocks.