Goldman Sachs BDC (NYSE: GSBD) is one of 55 public companies in the “Investment Management & Fund Operators” industry, but how does it weigh in compared to its peers? We will compare Goldman Sachs BDC to related businesses based on the strength of its profitability, valuation, institutional ownership, earnings, dividends, risk and analyst recommendations.

Earnings & Valuation

This table compares Goldman Sachs BDC and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Goldman Sachs BDC N/A N/A 17.40
Goldman Sachs BDC Competitors $2.89 billion $931.92 million 7.47

Goldman Sachs BDC’s peers have higher revenue and earnings than Goldman Sachs BDC. Goldman Sachs BDC is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 8.0%. 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. As a group, “Investment Management & Fund Operators” companies pay a dividend yield of 2.6% and pay out 49.1% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for Goldman Sachs BDC and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Goldman Sachs BDC 1 4 3 0 2.25
Goldman Sachs BDC Competitors 280 1641 1765 57 2.43

Goldman Sachs BDC presently has a consensus price target of $22.18, indicating a potential downside of 1.20%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 7.61%. Given Goldman Sachs BDC’s peers stronger consensus rating and higher possible upside, analysts plainly believe Goldman Sachs BDC has less favorable growth aspects than its peers.

Risk and Volatility

Goldman Sachs BDC has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Goldman Sachs BDC’s peers have a beta of 1.23, indicating that their average stock price is 23% more volatile than the S&P 500.

Profitability

This table compares Goldman Sachs BDC and its peers’ 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%
Goldman Sachs BDC Competitors -45.46% 7.47% 4.98%

Insider and Institutional Ownership

36.7% of Goldman Sachs BDC shares are owned by institutional investors. Comparatively, 62.0% of shares of all “Investment Management & Fund Operators” companies are owned by institutional investors. 0.3% of Goldman Sachs BDC shares are owned by insiders. Comparatively, 10.5% of shares of all “Investment Management & Fund Operators” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Goldman Sachs BDC peers beat Goldman Sachs BDC on 9 of the 13 factors compared.

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.

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