Nicholas Financial (NASDAQ:NICK) and Palmer Square Capital BDC (NYSE:PSBD) Head to Head Analysis

Palmer Square Capital BDC (NYSE:PSBD) and Nicholas Financial (NASDAQ:NICK) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Institutional & Insider Ownership

6.5% of Palmer Square Capital BDC shares are owned by institutional investors. Comparatively, 39.9% of Nicholas Financial shares are owned by institutional investors. 43.0% of Nicholas Financial shares are owned 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Palmer Square Capital BDC and Nicholas Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palmer Square Capital BDC	0	3	4	0	2.57
Nicholas Financial	0	0	0	0	N/A

Palmer Square Capital BDC presently has a consensus target price of $16.93, indicating a potential upside of 2.78%. Given Palmer Square Capital BDC’s higher probable upside, equities analysts clearly believe Palmer Square Capital BDC is more favorable than Nicholas Financial.

Earnings & Valuation

This table compares Palmer Square Capital BDC and Nicholas Financial’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Palmer Square Capital BDC	$112.22 million	4.78	$107.84 million	N/A	N/A
Nicholas Financial	$2.00 million	44.76	-$34.12 million	($5.01)	-1.41

Palmer Square Capital BDC has higher revenue and earnings than Nicholas Financial.

Profitability

This table compares Palmer Square Capital BDC and Nicholas Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palmer Square Capital BDC	96.09%	23.31%	9.23%
Nicholas Financial	-134.48%	-50.06%	-42.27%

Dividends

Palmer Square Capital BDC pays an annual dividend of $1.68 per share and has a dividend yield of 10.2%. Nicholas Financial pays an annual dividend of $0.48 per share and has a dividend yield of 6.8%. Nicholas Financial pays out -9.6% of its earnings in the form of a dividend.

Summary

Palmer Square Capital BDC beats Nicholas Financial on 8 of the 12 factors compared between the two stocks.

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.

About Nicholas Financial

Nicholas Financial, Inc. operates as a consumer finance company in the United States. The company engages in acquiring and servicing automobile finance installment contracts for the purchase of new and used automobiles and light trucks. It also originates direct consumer loans and sells consumer-finance related products. The company operates branch offices located in Alabama, Florida, Georgia, Idaho, Illinois, Indiana, Kentucky, Michigan, Missouri, Nevada, North Carolina, Nevada, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Utah, and Wisconsin. Nicholas Financial, Inc. was founded in 1985 and is headquartered in Clearwater, Florida.