Analyzing Goldman Sachs BDC (GSBD) & Janus Capital Group (JNS)
Goldman Sachs BDC (NYSE: GSBD) and Janus Capital Group (NYSE:JNS) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.
This is a summary of current ratings and target prices for Goldman Sachs BDC and Janus Capital Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Goldman Sachs BDC||0||3||3||0||2.50|
|Janus Capital Group||1||1||0||0||1.50|
Earnings & Valuation
This table compares Goldman Sachs BDC and Janus Capital Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Goldman Sachs BDC||$125.11 million||6.94||$40.65 million||$1.12||19.31|
|Janus Capital Group||N/A||N/A||N/A||$0.76||18.64|
Goldman Sachs BDC has higher revenue and earnings than Janus Capital Group. Janus Capital Group 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.
This table compares Goldman Sachs BDC and Janus Capital Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Goldman Sachs BDC||32.19%||11.34%||6.65%|
|Janus Capital Group||12.54%||7.26%||4.48%|
Insider & Institutional Ownership
36.5% of Goldman Sachs BDC shares are owned by institutional investors. Comparatively, 90.2% of Janus Capital Group shares are owned by institutional investors. 0.3% of Goldman Sachs BDC shares are owned by insiders. Comparatively, 2.1% of Janus Capital Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 8.3%. Janus Capital Group pays an annual dividend of $0.44 per share and has a dividend yield of 3.1%. Goldman Sachs BDC pays out 160.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Janus Capital Group pays out 57.9% of its earnings in the form of a dividend. Goldman Sachs BDC has increased its dividend for 6 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 Janus Capital Group on 10 of the 13 factors compared between the two stocks.
About Goldman Sachs BDC
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.
About Janus Capital Group
Janus Capital Group Inc. provides investment management, administration, distribution and related services to financial advisors, individuals and institutional clients through mutual funds, separate accounts, other pooled investment vehicles, exchange-traded products (ETPs) and subadvised relationships (collectively referred to as investment products) in both domestic and international markets. The Company operates through investment management business segment. The Company provides investment management solutions across a range of disciplines, including fundamental the United States and global equities (growth and value), mathematical equities, fixed income and alternatives. As of December 31, 2016, the Company’s investment products were distributed through three primary channels: intermediary, institutional and self-directed. Each distribution channel focuses on specific investor groups and the requirements of each group.
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