Goldman Sachs BDC (NYSE:GSBD) and BlackRock MuniYield New York Quality Fund (NYSE:MYN) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.
Institutional & Insider Ownership
13.8% of Goldman Sachs BDC shares are owned by institutional investors. 0.3% of Goldman Sachs BDC shares are owned by company insiders. Comparatively, 1.0% of BlackRock MuniYield New York Quality Fund shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Goldman Sachs BDC and BlackRock MuniYield New York Quality Fund, as reported 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 MuniYield New York Quality Fund | 0 | 0 | 0 | 0 | N/A |
Goldman Sachs BDC currently has a consensus target price of $15.9167, suggesting a potential downside of 22.43%. Given Goldman Sachs BDC's higher possible upside, equities research analysts clearly believe Goldman Sachs BDC is more favorable than BlackRock MuniYield New York Quality Fund.
Dividends
Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 8.8%. BlackRock MuniYield New York Quality Fund pays an annual dividend of $0.58 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 increased its dividend for 1 consecutive years and BlackRock MuniYield New York Quality Fund has increased its dividend for 1 consecutive years.
Profitability
This table compares Goldman Sachs BDC and BlackRock MuniYield New York Quality Fund's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Goldman Sachs BDC | 9.56% | 11.79% | 4.83% |
BlackRock MuniYield New York Quality Fund | N/A | N/A | N/A |
Earnings and Valuation
This table compares Goldman Sachs BDC and BlackRock MuniYield New York Quality Fund's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Goldman Sachs BDC | $147.26 million | 14.16 | $36.15 million | $1.98 | 10.36 |
BlackRock MuniYield New York Quality Fund | N/A | N/A | N/A | N/A | N/A |
Goldman Sachs BDC has higher revenue and earnings than BlackRock MuniYield New York Quality Fund.
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, BlackRock MuniYield New York Quality Fund has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500.
Summary
Goldman Sachs BDC beats BlackRock MuniYield New York Quality Fund on 9 of the 11 factors compared between the two stocks.