Financial Comparison: Barings BDC (NYSE:BBDC) and AlTi Global (NASDAQ:ALTI)

AlTi Global (NASDAQ:ALTI) and Barings BDC (NYSE:BBDC) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.

Valuation and Earnings

This table compares AlTi Global and Barings BDC’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AlTi Global	$250.88 million	2.28	-$162.61 million	($1.83)	-2.61
Barings BDC	$289.20 million	3.59	$128.00 million	$1.23	7.97

Barings BDC has higher revenue and earnings than AlTi Global. AlTi Global is trading at a lower price-to-earnings ratio than Barings BDC, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for AlTi Global and Barings BDC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AlTi Global	0	0	0	1	4.00
Barings BDC	0	1	1	0	2.50

AlTi Global presently has a consensus price target of $9.00, suggesting a potential upside of 88.68%. Barings BDC has a consensus price target of $9.13, suggesting a potential downside of 6.89%. Given AlTi Global’s stronger consensus rating and higher probable upside, analysts clearly believe AlTi Global is more favorable than Barings BDC.

Volatility & Risk

AlTi Global has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, Barings BDC has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Insider and Institutional Ownership

3.6% of AlTi Global shares are owned by institutional investors. Comparatively, 44.1% of Barings BDC shares are owned by institutional investors. 22.1% of AlTi Global shares are owned by insiders. Comparatively, 0.5% of Barings BDC shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares AlTi Global and Barings BDC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AlTi Global	-29.75%	7.45%	4.93%
Barings BDC	45.35%	10.77%	4.78%

Summary

Barings BDC beats AlTi Global on 9 of the 15 factors compared between the two stocks.

About AlTi Global

AlTi Global, Inc. provides wealth and asset management services individuals, families, foundations, and institutions in the United States, the United Kingdom, and internationally. It operates through two segments, Wealth Management and Strategic Alternatives. The company offers discretionary investment management, non-discretionary investment advisory, and investment management and advisory services. It also provides trust and administration services, such as entity formation and management; creating or modifying trust instruments and administrative practices to meet beneficiary needs; corporate, trustee-executor, and fiduciary services; provision of directors and company secretarial services; administering entity ownership of intellectual property rights; advisory and administration services in connection with investments in marine and aviation assets; and administering entity ownership of fine art and collectibles. In addition, the company offers family office services comprising bookkeeping and back office services, private foundation management and grant making, oversight of trust administration, financial tracking and reporting, cash flow management and bill pay, and other financial services, as well as clients estate and wealth planning, family governance and education, and philanthropic and strategic services. It also provides ancillary fund management services, including investments, financial planning and strategy, sales and marketing, and back and middle office infrastructure and administration. The company offers strategic advisory, corporate advisory, brokerage, and placement agency services; structures, arranges, and provides investors with co-investment opportunities in various alternative assets; manages and advises public and private investment funds, as well as alternatives platform. The company was formerly known as Alvarium Tiedemann Holdings, Inc. and changed its name to AlTi Global, Inc. in April 2023. The company is based in New York, New York.

About Barings BDC

Barings BDC, Inc. is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. It seeks to invest primarily in senior secured loans, first lien debt, unitranche, second lien debt, subordinated debt, equity co-investments and senior secured private debt investments in private middle-market companies that operate across a wide range of industries. It specializes in mezzanine, leveraged buyouts, management buyouts, ESOPs, change of control transactions, acquisition financings, growth financing, and recapitalizations in lower middle market, mature, and later stage companies. It invests in manufacturing and distribution; business services and technology; transportation and logistics; consumer product and services. It invests in United States. It invests in companies with EBITDA of $10 million to $75 million, typically in private equity sponsor backed.