BlackRock MuniYield Fund (NYSE:MYD) and Goldman Sachs BDC (NYSE:GSBD) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.
Valuation & Earnings
This table compares BlackRock MuniYield Fund and Goldman Sachs BDC's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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BlackRock MuniYield Fund | N/A | N/A | N/A | N/A | N/A |
Goldman Sachs BDC | $147.26 million | 13.35 | $36.15 million | $1.98 | 9.77 |
Goldman Sachs BDC has higher revenue and earnings than BlackRock MuniYield Fund.
Profitability
This table compares BlackRock MuniYield Fund and Goldman Sachs BDC's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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BlackRock MuniYield Fund | N/A | N/A | N/A |
Goldman Sachs BDC | 9.56% | 11.79% | 4.83% |
Volatility and Risk
BlackRock MuniYield Fund has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, Goldman Sachs BDC has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.
Institutional and Insider Ownership
12.9% of BlackRock MuniYield Fund shares are held by institutional investors. Comparatively, 13.8% of Goldman Sachs BDC shares are held by institutional investors. 1.0% of BlackRock MuniYield Fund shares are held by company insiders. Comparatively, 0.3% of Goldman Sachs BDC shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Dividends
BlackRock MuniYield Fund pays an annual dividend of $0.67 per share and has a dividend yield of 4.5%. Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 9.3%. 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. BlackRock MuniYield Fund has increased its dividend for 1 consecutive years and Goldman Sachs BDC has increased its dividend for 1 consecutive years.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for BlackRock MuniYield Fund and Goldman Sachs BDC, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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BlackRock MuniYield Fund | 0 | 0 | 0 | 0 | N/A |
Goldman Sachs BDC | 0 | 2 | 1 | 0 | 2.33 |
Goldman Sachs BDC has a consensus price target of $15.9167, suggesting a potential downside of 17.74%. Given Goldman Sachs BDC's higher possible upside, analysts plainly believe Goldman Sachs BDC is more favorable than BlackRock MuniYield Fund.
Summary
Goldman Sachs BDC beats BlackRock MuniYield Fund on 9 of the 11 factors compared between the two stocks.