Analyzing Palmer Square Capital BDC (PSBD) and Its Competitors

Palmer Square Capital BDC (NYSE:PSBD) is one of 1,743 publicly-traded companies in the “Capital Markets” industry, but how does it contrast to its rivals? We will compare Palmer Square Capital BDC to similar companies based on the strength of its profitability, risk, earnings, valuation, dividends, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Palmer Square Capital BDC and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palmer Square Capital BDC	0	5	0	0	2.00
Palmer Square Capital BDC Competitors	5561	20139	22479	642	2.37

Palmer Square Capital BDC currently has a consensus target price of $10.50, suggesting a potential upside of 6.22%. As a group, “Capital Markets” companies have a potential upside of 26.43%. Given Palmer Square Capital BDC’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Palmer Square Capital BDC has less favorable growth aspects than its rivals.

Dividends

Palmer Square Capital BDC pays an annual dividend of $1.44 per share and has a dividend yield of 14.6%. Palmer Square Capital BDC pays out -228.6% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 29.1% of their earnings in the form of a dividend. Palmer Square Capital BDC is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

6.5% of Palmer Square Capital BDC shares are held by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are held by institutional investors. 1.1% of Palmer Square Capital BDC shares are held by company insiders. Comparatively, 13.1% of shares of all “Capital Markets” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Palmer Square Capital BDC and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palmer Square Capital BDC	-18.27%	11.16%	4.07%
Palmer Square Capital BDC Competitors	318.24%	11.44%	3.69%

Volatility and Risk

Palmer Square Capital BDC has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Palmer Square Capital BDC’s rivals have a beta of 0.81, meaning that their average share price is 19% less volatile than the S&P 500.

Earnings and Valuation

This table compares Palmer Square Capital BDC and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Palmer Square Capital BDC	-$15.81 million	-$3.17 million	-15.69
Palmer Square Capital BDC Competitors	$5.22 billion	$399.10 million	17.84

Palmer Square Capital BDC’s rivals have higher revenue and earnings than Palmer Square Capital BDC. Palmer Square Capital 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.

Summary

Palmer Square Capital BDC rivals beat Palmer Square Capital BDC on 11 of the 15 factors compared.

About Palmer Square Capital BDC

Palmer Square Capital BDC Inc. is an externally managed, non-diversified closed-end management investment company which primarily lends to and invests in corporate debt securities, including small to large private U.S. companies and has elected to be regulated as a business development company. Palmer Square Capital BDC Inc. is based in MISSION WOODS, Kan.