Analyzing Palmer Square Capital BDC (PSBD) and Its Competitors
by Danessa Lincoln · The Markets DailyPalmer Square Capital BDC (NYSE:PSBD – Get Free Report) is one of 1,744 publicly-traded companies in the “Capital Markets” industry, but how does it compare to its rivals? We will compare Palmer Square Capital BDC to similar companies based on the strength of its dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.
Analyst Recommendations
This is a summary of current ratings and price targets for Palmer Square Capital BDC and its rivals, as reported by MarketBeat.
| 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 | 5534 | 20095 | 22422 | 641 | 2.37 |
Palmer Square Capital BDC presently has a consensus target price of $10.50, indicating a potential upside of 5.63%. As a group, “Capital Markets” companies have a potential upside of 26.90%. Given Palmer Square Capital BDC’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Palmer Square Capital BDC has less favorable growth aspects than its rivals.
Earnings & Valuation
This table compares Palmer Square Capital BDC and its rivals top-line revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Palmer Square Capital BDC | $124.39 million | -$3.17 million | -10.04 |
| Palmer Square Capital BDC Competitors | $2.39 billion | $395.48 million | 15.94 |
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.
Insider and Institutional Ownership
6.5% of Palmer Square Capital BDC shares are owned by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are owned by institutional investors. 1.1% of Palmer Square Capital BDC shares are owned by insiders. Comparatively, 13.0% of shares of all “Capital Markets” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Palmer Square Capital BDC has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Palmer Square Capital BDC’s rivals have a beta of 0.81, suggesting that their average share price is 19% less volatile than the S&P 500.
Dividends
Palmer Square Capital BDC pays an annual dividend of $1.44 per share and has a dividend yield of 14.5%. Palmer Square Capital BDC pays out -145.5% 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 30.0% 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.
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 | -26.73% | 11.22% | 4.15% |
| Palmer Square Capital BDC Competitors | 304.49% | 79.05% | 3.65% |
Summary
Palmer Square Capital BDC rivals beat Palmer Square Capital BDC on 11 of the 15 factors compared.
Palmer Square Capital BDC Company Profile
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.