Goldman Sachs BDC (NYSE:GSBD) and The Gabelli Equity Trust (NYSE:GAB) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.
Institutional and Insider Ownership
13.8% of Goldman Sachs BDC shares are owned by institutional investors. Comparatively, 5.6% of The Gabelli Equity Trust shares are owned by institutional investors. 0.3% of Goldman Sachs BDC shares are owned by company insiders. Comparatively, 1.0% of The Gabelli Equity Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Goldman Sachs BDC and The Gabelli Equity Trust's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Goldman Sachs BDC | $147.26 million | 13.29 | $36.15 million | $1.98 | 9.73 |
The Gabelli Equity Trust | N/A | N/A | N/A | N/A | N/A |
Goldman Sachs BDC has higher revenue and earnings than The Gabelli Equity Trust.
Profitability
This table compares Goldman Sachs BDC and The Gabelli Equity Trust's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Goldman Sachs BDC | 9.56% | 11.79% | 4.83% |
The Gabelli Equity Trust | N/A | N/A | N/A |
Risk & Volatility
Goldman Sachs BDC has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, The Gabelli Equity Trust has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for Goldman Sachs BDC and The Gabelli Equity Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Goldman Sachs BDC | 0 | 2 | 1 | 0 | 2.33 |
The Gabelli Equity Trust | 0 | 0 | 0 | 0 | N/A |
Goldman Sachs BDC currently has a consensus price target of $15.9167, indicating a potential downside of 17.66%. Given Goldman Sachs BDC's higher probable upside, analysts clearly believe Goldman Sachs BDC is more favorable than The Gabelli Equity Trust.
Dividends
Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 9.3%. The Gabelli Equity Trust pays an annual dividend of $0.60 per share and has a dividend yield of 8.6%. 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 and The Gabelli Equity Trust has raised its dividend for 1 consecutive years.
Summary
Goldman Sachs BDC beats The Gabelli Equity Trust on 9 of the 11 factors compared between the two stocks.