Goldman Sachs BDC (NYSE:GSBD) and Gabelli Equity Trust (NYSE:GAB) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.
Earnings and Valuation
This table compares Goldman Sachs BDC and Gabelli Equity Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Goldman Sachs BDC||$146.73 million||5.69||$53.68 million||$2.06||10.05|
|Gabelli Equity Trust||N/A||N/A||N/A||N/A||N/A|
Risk & Volatility
Goldman Sachs BDC has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Gabelli Equity Trust has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.
Institutional & Insider Ownership
35.1% of Goldman Sachs BDC shares are held by institutional investors. Comparatively, 5.8% of Gabelli Equity Trust shares are held by institutional investors. 0.3% of Goldman Sachs BDC shares are held by company insiders. Comparatively, 1.0% of Gabelli Equity Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Goldman Sachs BDC and Gabelli Equity Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Goldman Sachs BDC||24.25%||12.07%||5.95%|
|Gabelli Equity Trust||N/A||N/A||N/A|
This is a summary of recent ratings and price targets for Goldman Sachs BDC and Gabelli Equity Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Goldman Sachs BDC||0||2||3||0||2.60|
|Gabelli Equity Trust||0||0||0||0||N/A|
Goldman Sachs BDC currently has a consensus price target of $21.25, indicating a potential upside of 2.66%. Given Goldman Sachs BDC’s higher possible upside, research analysts clearly believe Goldman Sachs BDC is more favorable than Gabelli Equity Trust.
Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 8.7%. Gabelli Equity Trust pays an annual dividend of $0.64 per share and has a dividend yield of 10.6%. Goldman Sachs BDC pays out 87.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Goldman Sachs BDC has raised its dividend for 3 consecutive years.
Goldman Sachs BDC beats Gabelli Equity Trust on 8 of the 12 factors compared between the two stocks.
About Goldman Sachs BDC
Goldman Sachs BDC, Inc. is a business development company specializing in middle market and mezzanine investment in private companies. It seeks to make capital appreciation through direct originations of secured debt, senior secured debt, junior secured debt, including first lien, first lien/last-out unitranche and second lien debt, unsecured debt, including mezzanine debt and, to a lesser extent, investments in equities. The fund primarily invests in United States. It seeks to invest between $10 million and $75 million in companies with EBITDA between $5 million and $75 million annually.
About Gabelli Equity Trust
The Gabelli Equity Trust Inc. is a closed ended equity mutual fund launched by GAMCO Investors, Inc. The fund is managed by Gabelli Funds, LLC. It invests in public equity markets of the United States. The fund seeks to invest in stocks of companies operating across diversified sectors. It invests in preferred stock, convertible or exchangeable securities, and warrants and rights. The fund primarily invests in value stocks of companies across market capitalizations. It employs fundamental analysis with a bottom-up stock picking approach to create its portfolio. The fund seeks to benchmarks the performance of its portfolio against the S&P 500 Index, Dow Jones Industrial Average, and Nasdaq Composite Index. The Gabelli Equity Trust Inc. was formed on August 21, 1986 and is domiciled in the United States.
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