Goldman Sachs BDC (GSBD) Competitors

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

Does the media favor GSBD or ARCC?

In the previous week, Ares Capital had 16 more articles in the media than Goldman Sachs BDC. MarketBeat recorded 19 mentions for Ares Capital and 3 mentions for Goldman Sachs BDC. Ares Capital's average media sentiment score of 1.22 beat Goldman Sachs BDC's score of 0.42 indicating that Ares Capital is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Goldman Sachs BDC	1 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
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

Which has more risk and volatility, GSBD or ARCC?

Goldman Sachs BDC has a beta of 0.72, indicating that its stock price is 28% 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.

Do analysts prefer GSBD or ARCC?

Goldman Sachs BDC presently has a consensus price target of $12.00, suggesting a potential upside of 4.20%. Ares Capital has a consensus price target of $22.00, suggesting a potential downside of 1.70%. Given Goldman Sachs BDC's higher probable upside, analysts plainly believe Goldman Sachs BDC is more favorable than Ares Capital.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Goldman Sachs BDC	1 Sell rating(s)	1 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.50
Ares Capital	0 Sell rating(s)	3 Hold rating(s)	5 Buy rating(s)	1 Strong Buy rating(s)	2.78

Which has preferable valuation and earnings, GSBD or ARCC?

Ares Capital has higher revenue and earnings than Goldman Sachs BDC. Ares Capital is trading at a lower price-to-earnings ratio than Goldman Sachs 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
Goldman Sachs BDC	$434.37M	3.11	$62.87M	$0.45	25.59
Ares Capital	$2.99B	5.20	$1.52B	$2.05	10.92

Is GSBD or ARCC more profitable?

Ares Capital has a net margin of 43.50% compared to Goldman Sachs BDC's net margin of 12.38%. Goldman Sachs BDC's return on equity of 15.05% beat Ares Capital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Goldman Sachs BDC	12.38%	15.05%	6.64%
Ares Capital	43.50%	11.05%	5.25%

Is GSBD or ARCC a better dividend stock?

Goldman Sachs BDC pays an annual dividend of $1.28 per share and has a dividend yield of 11.1%. Ares Capital pays an annual dividend of $1.92 per share and has a dividend yield of 8.6%. Goldman Sachs BDC pays out 284.4% 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.

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

28.7% of Goldman Sachs BDC shares are owned by institutional investors. Comparatively, 27.4% of Ares Capital shares are owned by institutional investors. 0.1% of Goldman Sachs BDC shares are owned by insiders. Comparatively, 0.5% of Ares Capital 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

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