Goldman Sachs BDC (NYSE:GSBD) and BlackRock MuniAssets Fund (NYSE:MUA) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
13.8% of Goldman Sachs BDC shares are owned by institutional investors. Comparatively, 8.6% of BlackRock MuniAssets Fund shares are owned by institutional investors. 0.3% of Goldman Sachs BDC shares are owned by insiders. Comparatively, 1.0% of BlackRock MuniAssets Fund shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and price targets for Goldman Sachs BDC and BlackRock MuniAssets Fund, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Goldman Sachs BDC | 0 | 2 | 1 | 0 | 2.33 |
BlackRock MuniAssets Fund | 0 | 0 | 0 | 0 | N/A |
Goldman Sachs BDC presently has a consensus target price of $15.9167, suggesting a potential downside of 16.14%. Given Goldman Sachs BDC's higher possible upside, equities analysts clearly believe Goldman Sachs BDC is more favorable than BlackRock MuniAssets Fund.
Earnings & Valuation
This table compares Goldman Sachs BDC and BlackRock MuniAssets Fund's gross 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 | 13.09 | $36.15 million | $1.98 | 9.59 |
BlackRock MuniAssets Fund | N/A | N/A | N/A | N/A | N/A |
Goldman Sachs BDC has higher revenue and earnings than BlackRock MuniAssets Fund.
Volatility & Risk
Goldman Sachs BDC has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, BlackRock MuniAssets Fund has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.
Dividends
Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 9.5%. BlackRock MuniAssets Fund pays an annual dividend of $0.63 per share and has a dividend yield of 4.3%. 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 BlackRock MuniAssets Fund has raised its dividend for 1 consecutive years.
Profitability
This table compares Goldman Sachs BDC and BlackRock MuniAssets Fund'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% |
BlackRock MuniAssets Fund | N/A | N/A | N/A |
Summary
Goldman Sachs BDC beats BlackRock MuniAssets Fund on 9 of the 11 factors compared between the two stocks.