Goldman Sachs BDC (GSBD) & UBS AG (UBS) Financial Analysis
Goldman Sachs BDC (NYSE: GSBD) and UBS AG (NYSE:UBS) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.
This table compares Goldman Sachs BDC and UBS AG’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Goldman Sachs BDC||35.73%||11.54%||6.67%|
This is a breakdown of recent ratings for Goldman Sachs BDC and UBS AG, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Goldman Sachs BDC||1||4||3||0||2.25|
Goldman Sachs BDC currently has a consensus price target of $22.18, indicating a potential downside of 3.57%. Given Goldman Sachs BDC’s higher possible upside, research analysts clearly believe Goldman Sachs BDC is more favorable than UBS AG.
Institutional & Insider Ownership
36.7% of Goldman Sachs BDC shares are owned by institutional investors. Comparatively, 31.4% of UBS AG shares are owned by institutional investors. 0.3% of Goldman Sachs BDC shares are owned by insiders. Comparatively, 1.0% of UBS AG shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Goldman Sachs BDC has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, UBS AG has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.
Valuation and Earnings
This table compares Goldman Sachs BDC and UBS AG’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Goldman Sachs BDC||N/A||N/A||N/A||$1.29||17.83|
|UBS AG||$30.48 billion||2.07||$3.94 billion||$1.06||15.99|
UBS AG has higher revenue and earnings than Goldman Sachs BDC. UBS AG is trading at a lower price-to-earnings ratio than Goldman Sachs BDC, indicating that it is currently the more affordable of the two stocks.
Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 7.8%. UBS AG pays an annual dividend of $0.60 per share and has a dividend yield of 3.5%. Goldman Sachs BDC pays out 139.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UBS AG pays out 56.6% of its earnings in the form of a dividend. Goldman Sachs BDC has raised its dividend for 4 consecutive years. Goldman Sachs BDC is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Goldman Sachs BDC beats UBS AG on 8 of the 14 factors compared between the two stocks.
Goldman Sachs BDC Company Profile
Goldman Sachs BDC, Inc. is a closed-end management investment company. The Company is a specialty finance company, which is focused on lending to middle-market companies. The Company’s investment objective is to generate current income and, to a lesser extent, capital appreciation primarily through direct originations of secured debt, including first lien, including first lien, unitranche, including last out portions of such loans, and second lien debt, and unsecured debt, including mezzanine debt, as well as through select equity investments. The Company invests primarily in the United States middle-market companies. The Company invests in illiquid securities, including debt and equity investments, of middle-market companies. As of December 31, 2016, its portfolio included first lien/senior secured debt, first lien/last-out unitranche, second lien/senior secured debt, unsecured debt, preferred stock, common stock, and investment funds and vehicles.
UBS AG Company Profile
UBS Group AG is a holding company and conducts its operations through UBS AG and its subsidiaries. The Company comprises Corporate Center and five business divisions: Wealth Management, Wealth Management Americas, Personal & Corporate Banking, Asset Management and the Investment Bank. Wealth Management division provides advice and tailored financial services to wealthy private clients around the world, except those served by Wealth Management Americas. Wealth Management Americas division is a wealth manager in the Americas in terms of financial advisor productivity and invested assets by financial advisor. Personal & Corporate Banking division provides financial products and services to private, corporate and institutional clients in Switzerland. Asset Management division provides investment management products and services, platform solutions and advisory support. Investment Bank division provides investment advice, financial solutions and capital markets access.
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