Critical Analysis: Golub Capital BDC (NASDAQ:GBDC) versus Invent Ventures (OTCMKTS:IDEA)

Invent Ventures (OTCMKTS:IDEA) and Golub Capital BDC (NASDAQ:GBDC) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Earnings and Valuation

This table compares Invent Ventures and Golub Capital BDC”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Invent Ventures	$790,000.00	1.92	$710,000.00	N/A	N/A
Golub Capital BDC	$870.78 million	3.82	$376.65 million	$1.25	10.10

Golub Capital BDC has higher revenue and earnings than Invent Ventures.

Risk & Volatility

Invent Ventures has a beta of -57.01, indicating that its share price is 5,801% less volatile than the S&P 500. Comparatively, Golub Capital BDC has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500.

Profitability

This table compares Invent Ventures and Golub Capital BDC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invent Ventures	27.92%	N/A	N/A
Golub Capital BDC	38.57%	10.37%	4.58%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Invent Ventures and Golub Capital BDC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invent Ventures	0	0	0	0	0.00
Golub Capital BDC	0	1	3	1	3.00

Golub Capital BDC has a consensus price target of $14.38, suggesting a potential upside of 13.82%. Given Golub Capital BDC’s stronger consensus rating and higher probable upside, analysts clearly believe Golub Capital BDC is more favorable than Invent Ventures.

Insider and Institutional Ownership

42.4% of Golub Capital BDC shares are owned by institutional investors. 19.4% of Invent Ventures shares are owned by insiders. Comparatively, 1.4% of Golub Capital BDC shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Golub Capital BDC beats Invent Ventures on 12 of the 13 factors compared between the two stocks.

About Invent Ventures

Invent Ventures, Inc., formerly known as Los Angeles Syndicate of Technology, Inc., is venture capital firm specializing in incubation, seed, start ups, growth capital, and early stage investments. The firm prefers to invest in technology companies including web-based software, digital media, mobile applications, social media, consumer internet, online advertising and healthcare technology . It prefers to invest in the Los Angeles area of United States. The firm seeks to invest up to $0.25 million. Invent Ventures, Inc. was founded on August 18, 2005 and is based in Santa Monica, California.

About Golub Capital BDC

Golub Capital BDC, Inc. (GBDC) is a business development company and operates as an externally managed closed-end non-diversified management investment company. It invests in debt and minority equity investments in middle-market companies that are, in most cases, sponsored by private equity investors. It typically invests in diversified consumer services, automobiles, healthcare technology, insurance, health care equipment and supplies, hotels, restaurants and leisure, healthcare providers and services, IT services and specialty retails. It seeks to invest in the United States. It primarily invests in first lien traditional senior debt, first lien one stop, junior debt and equity, senior secured, one stop, unitranche, second lien, subordinated and mezzanine loans of middle-market companies, and warrants.