Contrasting Nuveen Churchill Direct Lending (NYSE:NCDL) and Guild (NYSE:GHLD)

Nuveen Churchill Direct Lending (NYSE:NCDL) and Guild (NYSE:GHLD) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares Nuveen Churchill Direct Lending and Guild’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nuveen Churchill Direct Lending	46.95%	11.91%	4.89%
Guild	-5.95%	3.57%	1.27%

Institutional and Insider Ownership

17.5% of Guild shares are owned by institutional investors. 78.5% of Guild shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Nuveen Churchill Direct Lending and Guild’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nuveen Churchill Direct Lending	$82.09 million	11.60	$75.94 million	N/A	N/A
Guild	$655.19 million	1.26	-$39.01 million	($0.65)	-20.85

Nuveen Churchill Direct Lending has higher earnings, but lower revenue than Guild.

Analyst Ratings

This is a summary of current recommendations and price targets for Nuveen Churchill Direct Lending and Guild, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nuveen Churchill Direct Lending	0	3	3	0	2.50
Guild	1	1	2	0	2.25

Nuveen Churchill Direct Lending currently has a consensus price target of $18.50, indicating a potential upside of 6.51%. Guild has a consensus price target of $15.25, indicating a potential upside of 12.55%. Given Guild’s higher probable upside, analysts plainly believe Guild is more favorable than Nuveen Churchill Direct Lending.

Summary

Nuveen Churchill Direct Lending beats Guild on 7 of the 11 factors compared between the two stocks.

About Nuveen Churchill Direct Lending

Nuveen Churchill Direct Lending Corp. is a specialty finance company focused primarily on investing in senior secured loans to private equity-owned U.S. middle market companies. It has elected to be regulated as a business development company. Nuveen Churchill Direct Lending Corp. is based in NEW YORK.

About Guild

Guild Holdings Company originates, sells, and services residential mortgage loans in the United States. It operates in two segments, Origination and Servicing. The company offers residential mortgages through retail and correspondent channels. Guild Holdings Company was incorporated in 1960 and is headquartered in San Diego, California.