Head to Head Analysis: Golub Capital BDC (GBDC) & The Competition
Golub Capital BDC (NASDAQ: GBDC) is one of 562 publicly-traded companies in the “Closed End Funds” industry, but how does it weigh in compared to its peers? We will compare Golub Capital BDC to related businesses based on the strength of its analyst recommendations, dividends, institutional ownership, profitability, earnings, risk and valuation.
Volatility & Risk
Golub Capital BDC has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, Golub Capital BDC’s peers have a beta of 0.56, suggesting that their average stock price is 44% less volatile than the S&P 500.
Institutional and Insider Ownership
41.6% of Golub Capital BDC shares are held by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are held by institutional investors. 2.4% of Golub Capital BDC shares are held by company insiders. Comparatively, 3.5% of shares of all “Closed End Funds” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Golub Capital BDC pays an annual dividend of $1.28 per share and has a dividend yield of 6.8%. Golub Capital BDC pays out 96.2% 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, “Closed End Funds” companies pay a dividend yield of 9.0% and pay out 87.6% of their earnings in the form of a dividend. Golub Capital BDC lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
Earnings & Valuation
This table compares Golub Capital BDC and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Golub Capital BDC||N/A||N/A||14.08|
|Golub Capital BDC Competitors||$57.20 million||$39.05 million||-0.21|
Golub Capital BDC’s peers have higher revenue and earnings than Golub Capital BDC. Golub Capital 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.
This is a summary of recent ratings and target prices for Golub Capital BDC and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Golub Capital BDC||0||3||0||0||2.00|
|Golub Capital BDC Competitors||342||1479||1502||26||2.36|
Golub Capital BDC presently has a consensus price target of $19.33, indicating a potential upside of 3.28%. As a group, “Closed End Funds” companies have a potential upside of 40.07%. Given Golub Capital BDC’s peers stronger consensus rating and higher possible upside, analysts plainly believe Golub Capital BDC has less favorable growth aspects than its peers.
This table compares Golub Capital BDC and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Golub Capital BDC||53.62%||7.86%||3.95%|
|Golub Capital BDC Competitors||503.23%||7.84%||6.10%|
Golub Capital BDC peers beat Golub Capital BDC on 10 of the 14 factors compared.
About Golub Capital BDC
Golub Capital BDC, Inc. is an externally managed, non-diversified, closed-end, management investment company. The Company’s investment objective is to generate current income and capital appreciation by investing primarily in senior secured and one stop loans of the United States middle-market companies. It may also selectively invest in second lien and subordinated loans of, and warrants and minority equity securities in the United States middle-market companies. The Company seeks to create a portfolio that includes primarily senior secured and one stop loans by primarily investing in the securities of the United States middle-market companies. It generally invests in securities that have been rated below investment grade by independent rating agencies or that would be rated below investment grade if they were rated. The Company’s investment activities are managed by its investment advisor, GC Advisors LLC (GC Advisors).
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