Analyzing Goldman Sachs BDC (GSBD) & The Competition

Goldman Sachs BDC (NYSE: GSBD) is one of 53 public companies in the “Investment Management & Fund Operators” industry, but how does it contrast to its rivals? We will compare Goldman Sachs BDC to similar businesses based on the strength of its profitability, risk, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Goldman Sachs BDC and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Goldman Sachs BDC 0 4 3 0 2.43
Goldman Sachs BDC Competitors 237 1599 1786 57 2.45

Goldman Sachs BDC presently has a consensus price target of $22.60, indicating a potential upside of 2.08%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 8.39%. Given Goldman Sachs BDC’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Goldman Sachs BDC has less favorable growth aspects than its rivals.

Dividends

Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 8.1%. 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. As a group, “Investment Management & Fund Operators” companies pay a dividend yield of 2.5% and pay out 45.5% of their earnings in the form of a dividend.

Profitability

This table compares Goldman Sachs BDC and its rivals’ 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%
Goldman Sachs BDC Competitors -227.77% 1.51% 4.86%

Earnings and Valuation

This table compares Goldman Sachs BDC and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Goldman Sachs BDC $125.11 million $40.65 million 19.77
Goldman Sachs BDC Competitors $6.06 billion $896.42 million 664.08

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

Institutional & Insider Ownership

36.6% of Goldman Sachs BDC shares are held by institutional investors. Comparatively, 62.3% of shares of all “Investment Management & Fund Operators” companies are held by institutional investors. 0.3% of Goldman Sachs BDC shares are held by company insiders. Comparatively, 10.5% of shares of all “Investment Management & Fund Operators” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Goldman Sachs BDC has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Goldman Sachs BDC’s rivals have a beta of 1.42, indicating that their average stock price is 42% more volatile than the S&P 500.

Summary

Goldman Sachs BDC rivals beat Goldman Sachs BDC on 11 of the 15 factors compared.

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.

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