Pearl Diver Credit (PDCC) and Its Peers Critical Review

Pearl Diver Credit (NYSE:PDCC) is one of 342 publicly-traded companies in the “Financial Services” industry, but how does it compare to its peers? We will compare Pearl Diver Credit to related businesses based on the strength of its dividends, profitability, risk, analyst recommendations, earnings, institutional ownership and valuation.

Dividends

Pearl Diver Credit pays an annual dividend of $1.56 per share and has a dividend yield of 21.2%. Pearl Diver Credit pays out -34.7% of its earnings in the form of a dividend. As a group, “Financial Services” companies pay a dividend yield of 4.4% and pay out -89.7% of their earnings in the form of a dividend.

Institutional & Insider Ownership

43.0% of shares of all “Financial Services” companies are owned by institutional investors. 21.8% of shares of all “Financial Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Pearl Diver Credit and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pearl Diver Credit	N/A	N/A	N/A
Pearl Diver Credit Competitors	-409.64%	-16.14%	-6.10%

Earnings and Valuation

This table compares Pearl Diver Credit and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Pearl Diver Credit	$22.80 million	N/A	-1.64
Pearl Diver Credit Competitors	$24.34 billion	$1.07 billion	9.30

Pearl Diver Credit’s peers have higher revenue and earnings than Pearl Diver Credit. Pearl Diver Credit is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent recommendations and price targets for Pearl Diver Credit and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pearl Diver Credit	0	0	1	0	3.00
Pearl Diver Credit Competitors	1960	6864	11592	442	2.50

As a group, “Financial Services” companies have a potential downside of 2.82%. Given Pearl Diver Credit’s peers higher possible upside, analysts plainly believe Pearl Diver Credit has less favorable growth aspects than its peers.

Risk & Volatility

Pearl Diver Credit has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Pearl Diver Credit’s peers have a beta of 2.50, indicating that their average stock price is 150% more volatile than the S&P 500.

Summary

Pearl Diver Credit peers beat Pearl Diver Credit on 8 of the 14 factors compared.

About Pearl Diver Credit

Pearl Diver Credit Company Inc. is a newly organized, externally managed, non-diversified, closed-end management investment company. Its primary investment objective is to maximize its portfolio’s total return, with a secondary objective of generating high current income. Pearl Diver Credit Company Inc. is based in NEW YORK.