Barings Bdc (NYSE:BBDC – Get Free Report) and Crescent Capital BDC (NASDAQ:CCAP – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
44.1% of Barings Bdc shares are owned by institutional investors. Comparatively, 49.5% of Crescent Capital BDC shares are owned by institutional investors. 0.6% of Barings Bdc shares are owned by company insiders. Comparatively, 1.2% of Crescent Capital BDC shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Barings Bdc and Crescent Capital BDC, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Barings Bdc | 0 | 3 | 1 | 0 | 2.25 |
| Crescent Capital BDC | 1 | 3 | 2 | 0 | 2.17 |
Volatility and Risk
Barings Bdc has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Crescent Capital BDC has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.
Dividends
Barings Bdc pays an annual dividend of $1.04 per share and has a dividend yield of 12.0%. Crescent Capital BDC pays an annual dividend of $1.68 per share and has a dividend yield of 14.7%. Barings Bdc pays out 122.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Crescent Capital BDC pays out 409.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Barings Bdc has raised its dividend for 3 consecutive years and Crescent Capital BDC has raised its dividend for 1 consecutive years.
Profitability
This table compares Barings Bdc and Crescent Capital BDC’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Barings Bdc | 32.45% | 10.08% | 4.33% |
| Crescent Capital BDC | 9.26% | 9.34% | 4.04% |
Earnings and Valuation
This table compares Barings Bdc and Crescent Capital BDC”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Barings Bdc | $279.21 million | 3.26 | $101.92 million | $0.85 | 10.22 |
| Crescent Capital BDC | $167.29 million | 2.51 | $34.51 million | $0.41 | 27.83 |
Barings Bdc has higher revenue and earnings than Crescent Capital BDC. Barings Bdc is trading at a lower price-to-earnings ratio than Crescent Capital BDC, indicating that it is currently the more affordable of the two stocks.
Summary
Barings Bdc beats Crescent Capital BDC on 11 of the 17 factors compared between the two stocks.
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.
About Crescent Capital BDC
Crescent Capital BDC, Inc. is as a business development company private equity / buyouts and loan fund. It specializes in directly investing. It specializes in middle market. The fund seeks to invest in United States.
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