Head-To-Head Contrast: Palmer Square Capital BDC (PSBD) and Its Peers

Palmer Square Capital BDC (NYSE:PSBD) is one of 1,744 public companies in the “Capital Markets” industry, but how does it weigh in compared to its peers? We will compare Palmer Square Capital BDC to related businesses based on the strength of its profitability, analyst recommendations, institutional ownership, earnings, dividends, valuation and risk.

Risk & Volatility

Palmer Square Capital BDC has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Palmer Square Capital BDC’s peers have a beta of 0.81, meaning that their average stock price is 19% less volatile than the S&P 500.

Earnings and Valuation

This table compares Palmer Square Capital BDC and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Palmer Square Capital BDC	$124.39 million	-$3.17 million	-10.04
Palmer Square Capital BDC Competitors	$2.39 billion	$395.48 million	15.94

Palmer Square Capital BDC’s peers have higher revenue and earnings than Palmer Square Capital BDC. Palmer Square Capital BDC is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Palmer Square Capital BDC and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palmer Square Capital BDC	-26.73%	11.22%	4.15%
Palmer Square Capital BDC Competitors	304.49%	79.05%	3.65%

Analyst Ratings

This is a summary of recent recommendations for Palmer Square Capital BDC and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palmer Square Capital BDC	0	5	0	0	2.00
Palmer Square Capital BDC Competitors	5534	20095	22422	641	2.37

Palmer Square Capital BDC presently has a consensus target price of $10.50, indicating a potential upside of 5.63%. As a group, “Capital Markets” companies have a potential upside of 26.90%. Given Palmer Square Capital BDC’s peers stronger consensus rating and higher possible upside, analysts plainly believe Palmer Square Capital BDC has less favorable growth aspects than its peers.

Institutional & Insider Ownership

6.5% of Palmer Square Capital BDC shares are owned by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are owned by institutional investors. 1.1% of Palmer Square Capital BDC shares are owned by company insiders. Comparatively, 13.0% of shares of all “Capital Markets” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Palmer Square Capital BDC pays an annual dividend of $1.44 per share and has a dividend yield of 14.5%. Palmer Square Capital BDC pays out -145.5% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 30.0% of their earnings in the form of a dividend. Palmer Square Capital BDC is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Summary

Palmer Square Capital BDC peers beat Palmer Square Capital BDC on 11 of the 15 factors compared.

Palmer Square Capital BDC Company Profile

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.