Trinity Capital (NASDAQ:TRIN) & Goldman Sachs BDC (NYSE:GSBD) Head-To-Head Analysis

Trinity Capital (NASDAQ:TRIN) and Goldman Sachs BDC (NYSE:GSBD) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.

Valuation and Earnings

This table compares Trinity Capital and Goldman Sachs BDC”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trinity Capital	$293.65 million	5.17	$135.60 million	$1.89	8.94
Goldman Sachs BDC	$365.57 million	2.85	$119.27 million	$0.65	14.22

Trinity Capital has higher earnings, but lower revenue than Goldman Sachs BDC. Trinity Capital is trading at a lower price-to-earnings ratio than Goldman Sachs BDC, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Trinity Capital has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Goldman Sachs BDC has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Insider & Institutional Ownership

24.6% of Trinity Capital shares are held by institutional investors. Comparatively, 28.7% of Goldman Sachs BDC shares are held by institutional investors. 5.3% of Trinity Capital shares are held by insiders. Comparatively, 0.1% of Goldman Sachs BDC shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Trinity Capital and Goldman Sachs BDC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trinity Capital	43.45%	14.94%	6.69%
Goldman Sachs BDC	21.32%	10.94%	4.66%

Analyst Ratings

This is a breakdown of current ratings and price targets for Trinity Capital and Goldman Sachs BDC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trinity Capital	1	1	5	1	2.75
Goldman Sachs BDC	2	4	0	0	1.67

Trinity Capital presently has a consensus target price of $16.64, indicating a potential downside of 1.46%. Goldman Sachs BDC has a consensus target price of $9.17, indicating a potential downside of 0.84%. Given Goldman Sachs BDC’s higher possible upside, analysts plainly believe Goldman Sachs BDC is more favorable than Trinity Capital.

Dividends

Trinity Capital pays an annual dividend of $2.04 per share and has a dividend yield of 12.1%. Goldman Sachs BDC pays an annual dividend of $1.28 per share and has a dividend yield of 13.8%. Trinity Capital pays out 107.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Goldman Sachs BDC pays out 196.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Trinity Capital has increased its dividend for 1 consecutive years.

Summary

Trinity Capital beats Goldman Sachs BDC on 13 of the 18 factors compared between the two stocks.

About Trinity Capital

Trinity Capital Inc. is a business development company. It is a venture capital firm specializing in venture debt to growth stage companies looking for loans and/or equipment financing. Trinity Capital Inc. was founded in 2019 is based in Phoenix, Arizona with additional offices in the United States.

About Goldman Sachs BDC

Goldman Sachs BDC, Inc. is a business development company specializing in middle market and mezzanine investment in private companies. It seeks to make capital appreciation through direct originations of secured debt, senior secured debt, junior secured debt, including first lien, first lien/last-out unitranche and second lien debt, unsecured debt, including mezzanine debt and, to a lesser extent, investments in equities. The fund primarily invests in United States. It seeks to invest between $10 million and $75 million in companies with EBITDA between $5 million and $75 million annually.