Head to Head Analysis: Golub Capital BDC (GBDC) versus Its Competitors

Golub Capital BDC (NASDAQ:GBDC) is one of 1,746 publicly-traded companies in the “Capital Markets” industry, but how does it compare to its rivals? We will compare Golub Capital BDC to similar businesses based on the strength of its dividends, profitability, earnings, institutional ownership, risk, valuation and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Golub Capital BDC	21.45%	9.91%	4.39%
Golub Capital BDC Competitors	314.66%	9.82%	3.42%

Earnings & Valuation

This table compares Golub Capital BDC and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Golub Capital BDC	$870.78 million	$376.65 million	19.22
Golub Capital BDC Competitors	$2.39 billion	$398.05 million	14.94

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

Dividends

Golub Capital BDC pays an annual dividend of $1.32 per share and has a dividend yield of 10.6%. 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 29.2% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and target prices for Golub Capital BDC and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golub Capital BDC	0	2	4	1	2.86
Golub Capital BDC Competitors	5615	20217	22568	650	2.37

Golub Capital BDC presently has a consensus price target of $13.90, indicating a potential upside of 11.29%. As a group, “Capital Markets” companies have a potential upside of 23.73%. Given Golub Capital BDC’s rivals higher possible upside, analysts plainly believe Golub Capital BDC has less favorable growth aspects than its rivals.

Volatility & Risk

Golub Capital BDC has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, Golub Capital BDC’s rivals have a beta of 0.79, suggesting that their average share price is 21% less volatile than the S&P 500.

Insider & Institutional Ownership

42.4% of Golub Capital BDC shares are owned by institutional investors. Comparatively, 30.6% of shares of all “Capital Markets” companies are owned by institutional investors. 1.4% of Golub Capital BDC shares are owned by company insiders. Comparatively, 13.1% of shares of all “Capital Markets” companies 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.

Summary

Golub Capital BDC beats its rivals on 8 of the 15 factors compared.

About Golub Capital BDC

Golub Capital BDC, Inc. is a business development company that provides financing to U.S. middle-market businesses. It is externally managed by an affiliate of Golub Capital, a private credit investment firm. The company primarily invests in senior secured loans, including first-lien and unitranche loans, and may also make second-lien loans and equity investments. Its financing supports companies across a range of industries and may be used for acquisitions, growth, refinancing or other business needs.