Invesco California Value Municipal Income Trust (NYSE:VCV) and Goldman Sachs BDC (NYSE:GSBD) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.
Profitability
This table compares Invesco California Value Municipal Income Trust and Goldman Sachs BDC's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Invesco California Value Municipal Income Trust | N/A | N/A | N/A |
Goldman Sachs BDC | 9.56% | 11.79% | 4.83% |
Analyst Ratings
This is a summary of current recommendations and price targets for Invesco California Value Municipal Income Trust and Goldman Sachs BDC, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Invesco California Value Municipal Income Trust | 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, suggesting a potential downside of 21.71%. Given Goldman Sachs BDC's higher probable upside, analysts plainly believe Goldman Sachs BDC is more favorable than Invesco California Value Municipal Income Trust.
Valuation and Earnings
This table compares Invesco California Value Municipal Income Trust 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 |
---|
Invesco California Value Municipal Income Trust | N/A | N/A | N/A | N/A | N/A |
Goldman Sachs BDC | $147.26 million | 14.03 | $36.15 million | $1.98 | 10.27 |
Goldman Sachs BDC has higher revenue and earnings than Invesco California Value Municipal Income Trust.
Dividends
Invesco California Value Municipal Income Trust pays an annual dividend of $0.55 per share and has a dividend yield of 4.2%. Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 8.9%. 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. Invesco California Value Municipal Income Trust has increased its dividend for 1 consecutive years and Goldman Sachs BDC has increased its dividend for 1 consecutive years.
Volatility and Risk
Invesco California Value Municipal Income Trust has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500. Comparatively, Goldman Sachs BDC has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.
Institutional and Insider Ownership
8.9% of Invesco California Value Municipal Income Trust shares are owned by institutional investors. Comparatively, 13.8% of Goldman Sachs BDC shares are owned by institutional investors. 6.1% of Invesco California Value Municipal Income Trust shares are owned by insiders. Comparatively, 0.3% of Goldman Sachs BDC shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Goldman Sachs BDC beats Invesco California Value Municipal Income Trust on 9 of the 11 factors compared between the two stocks.