Head-To-Head Review: BNY Mellon Municipal Income (NYSE:DMF) versus Goldman Sachs BDC (NYSE:GSBD)

BNY Mellon Municipal Income (NYSE:DMF) and Goldman Sachs BDC (NYSE:GSBD) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Earnings & Valuation

This table compares BNY Mellon Municipal Income and Goldman Sachs BDC”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BNY Mellon Municipal Income	$26.28 million	5.64	N/A	N/A	N/A
Goldman Sachs BDC	$90.89 million	16.58	$195.87 million	$0.70	18.35

Goldman Sachs BDC has higher revenue and earnings than BNY Mellon Municipal Income.

Profitability

This table compares BNY Mellon Municipal Income and Goldman Sachs BDC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BNY Mellon Municipal Income	N/A	N/A	N/A
Goldman Sachs BDC	17.01%	15.72%	7.08%

Institutional and Insider Ownership

28.7% of Goldman Sachs BDC shares are owned by institutional investors. 1.0% of BNY Mellon Municipal Income shares are owned by insiders. Comparatively, 0.1% of Goldman Sachs BDC shares are owned by 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.

Dividends

BNY Mellon Municipal Income pays an annual dividend of $0.21 per share and has a dividend yield of 2.9%. Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 14.0%. Goldman Sachs BDC pays out 257.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of current ratings for BNY Mellon Municipal Income and Goldman Sachs BDC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BNY Mellon Municipal Income	0	0	0	0	0.00
Goldman Sachs BDC	0	2	0	0	2.00

Goldman Sachs BDC has a consensus target price of $13.00, suggesting a potential upside of 1.21%. Given Goldman Sachs BDC’s stronger consensus rating and higher possible upside, analysts plainly believe Goldman Sachs BDC is more favorable than BNY Mellon Municipal Income.

Volatility and Risk

BNY Mellon Municipal Income has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Goldman Sachs BDC has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Summary

Goldman Sachs BDC beats BNY Mellon Municipal Income on 10 of the 12 factors compared between the two stocks.

About BNY Mellon Municipal Income

BNY Mellon Municipal Income, Inc. is a closed ended fixed income mutual fund launched and managed by BNY Mellon Investment Adviser, Inc. It invests in the fixed income markets of the United States. The fund primarily invests in municipal obligations that are rated investment grade and have maturities of less than one year. It employs fundamental analysis to create its portfolio. The fund was formerly known as Dreyfus Municipal Income, Inc. BNY Mellon Municipal Income, Inc. was formed on October 24, 1988 and is domiciled in the United States.

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.