Financial Analysis: Mill City Ventures III (NASDAQ:MCVT) & Palmer Square Capital BDC (NYSE:PSBD)

Mill City Ventures III (NASDAQ:MCVT) and Palmer Square Capital BDC (NYSE:PSBD) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Profitability

This table compares Mill City Ventures III and Palmer Square Capital BDC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mill City Ventures III	-35.31%	-0.58%	-0.56%
Palmer Square Capital BDC	96.09%	23.31%	9.23%

Analyst Recommendations

This is a breakdown of current ratings for Mill City Ventures III and Palmer Square Capital BDC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mill City Ventures III	0	0	0	0	N/A
Palmer Square Capital BDC	0	3	4	0	2.57

Palmer Square Capital BDC has a consensus target price of $16.93, suggesting a potential upside of 1.49%. Given Palmer Square Capital BDC’s higher probable upside, analysts clearly believe Palmer Square Capital BDC is more favorable than Mill City Ventures III.

Insider & Institutional Ownership

11.6% of Mill City Ventures III shares are owned by institutional investors. Comparatively, 6.5% of Palmer Square Capital BDC shares are owned by institutional investors. 26.5% of Mill City Ventures III shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Mill City Ventures III and Palmer Square Capital BDC’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mill City Ventures III	$3.30 million	5.23	-$1.17 million	($0.19)	-14.21
Palmer Square Capital BDC	$112.22 million	4.84	$107.84 million	N/A	N/A

Palmer Square Capital BDC has higher revenue and earnings than Mill City Ventures III.

Summary

Palmer Square Capital BDC beats Mill City Ventures III on 7 of the 10 factors compared between the two stocks.

About Mill City Ventures III

Mill City Ventures III, Ltd. is a principal investment firm specializing investments in debt and equity securities of public and private companies to fund their operations whether its start-up, acquisition, or growth. It primarily focuses on investing in, lending to, and making managerial assistance available to privately held and publicly traded companies. The firm also advises its portfolio companies with regard to finance and operations. It was formerly known as Poker Magic, Inc. Mill City Ventures III, Ltd. was founded in January, 2006 and is based in Wayzata, Minnesota.

About Palmer Square Capital BDC

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.