Contrasting Golub Capital BDC (GBDC) and Its Competitors

Golub Capital BDC (NASDAQ:GBDC – Get Free Report) is one of 1,743 public companies in the “Capital Markets” industry, but how does it weigh in compared to its competitors? We will compare Golub Capital BDC to related companies based on the strength of its earnings, valuation, analyst recommendations, institutional ownership, profitability, risk and dividends.

Dividends

Golub Capital BDC pays an annual dividend of $1.32 per share and has a dividend yield of 10.4%. Golub Capital BDC pays out 203.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Risk and Volatility

Golub Capital BDC has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, Golub Capital BDC’s competitors have a beta of 0.81, meaning that their average share price is 19% less volatile than the S&P 500.

Institutional and Insider Ownership

42.4% of Golub Capital BDC shares are owned by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are owned by institutional investors. 1.4% of Golub Capital BDC shares are owned by insiders. Comparatively, 13.1% of shares of all “Capital Markets” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Golub Capital BDC and its competitors’ net margins, return on equity and return on assets.

Earnings & Valuation

This table compares Golub Capital BDC and its competitors gross revenue, earnings per share and valuation.

Golub Capital BDC’s competitors have higher revenue and earnings than Golub Capital BDC. Golub Capital BDC is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and price targets for Golub Capital BDC and its competitors, as reported by MarketBeat.

Golub Capital BDC currently has a consensus target price of $13.90, indicating a potential upside of 9.11%. As a group, “Capital Markets” companies have a potential upside of 26.43%. Given Golub Capital BDC’s competitors higher probable upside, analysts clearly believe Golub Capital BDC has less favorable growth aspects than its competitors.

Summary

Golub Capital BDC competitors beat Golub Capital BDC on 8 of the 15 factors compared.

Golub Capital BDC Company Profile

(Get Free Report)

Golub Capital BDC, Inc. (GBDC) is a business development company and operates as an externally managed closed-end non-diversified management investment company. It invests in debt and minority equity investments in middle-market companies that are, in most cases, sponsored by private equity investors. It typically invests in diversified consumer services, automobiles, healthcare technology, insurance, health care equipment and supplies, hotels, restaurants and leisure, healthcare providers and services, IT services and specialty retails. It seeks to invest in the United States. It primarily invests in first lien traditional senior debt, first lien one stop, junior debt and equity, senior secured, one stop, unitranche, second lien, subordinated and mezzanine loans of middle-market companies, and warrants.