PIMCO High Income Fund (NYSE:PHK) and Goldman Sachs BDC (NYSE:GSBD) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.
Volatility & Risk
PIMCO High Income Fund has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Goldman Sachs BDC has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings for PIMCO High Income Fund and Goldman Sachs BDC, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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PIMCO High Income Fund | 0 | 0 | 0 | 0 | N/A |
Goldman Sachs BDC | 0 | 2 | 1 | 0 | 2.33 |
Goldman Sachs BDC has a consensus target price of $15.9167, indicating a potential downside of 15.02%. Given Goldman Sachs BDC's higher probable upside, analysts clearly believe Goldman Sachs BDC is more favorable than PIMCO High Income Fund.
Earnings & Valuation
This table compares PIMCO High Income Fund and Goldman Sachs BDC's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
PIMCO High Income Fund | N/A | N/A | N/A | N/A | N/A |
Goldman Sachs BDC | $147.26 million | 12.92 | $36.15 million | $1.98 | 9.46 |
Goldman Sachs BDC has higher revenue and earnings than PIMCO High Income Fund.
Dividends
PIMCO High Income Fund pays an annual dividend of $0.62 per share and has a dividend yield of 9.6%. Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 9.6%. 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. PIMCO High Income Fund has raised its dividend for 1 consecutive years and Goldman Sachs BDC has raised its dividend for 1 consecutive years.
Profitability
This table compares PIMCO High Income Fund and Goldman Sachs BDC's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
PIMCO High Income Fund | N/A | N/A | N/A |
Goldman Sachs BDC | 9.56% | 11.79% | 4.83% |
Insider & Institutional Ownership
6.4% of PIMCO High Income Fund shares are owned by institutional investors. Comparatively, 13.8% of Goldman Sachs BDC shares are owned by institutional investors. 0.3% of Goldman Sachs BDC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Goldman Sachs BDC beats PIMCO High Income Fund on 9 of the 11 factors compared between the two stocks.