Goldman Sachs BDC (NYSE:GSBD) and Deutsche Strategic Income Trust (NYSE:KST) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.
Insider & Institutional Ownership
33.9% of Goldman Sachs BDC shares are owned by institutional investors. Comparatively, 54.4% of Deutsche Strategic Income Trust shares are owned by institutional investors. 0.3% of Goldman Sachs BDC shares are owned by company insiders. Comparatively, 1.0% of Deutsche Strategic Income Trust shares 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.
Goldman Sachs BDC has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Deutsche Strategic Income Trust has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500.
This is a summary of current ratings and target prices for Goldman Sachs BDC and Deutsche Strategic Income Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Goldman Sachs BDC||1||3||2||2||2.63|
|Deutsche Strategic Income Trust||0||0||0||0||N/A|
Goldman Sachs BDC presently has a consensus price target of $22.33, indicating a potential upside of 4.65%. Given Goldman Sachs BDC’s higher probable upside, equities analysts clearly believe Goldman Sachs BDC is more favorable than Deutsche Strategic Income Trust.
Earnings and Valuation
This table compares Goldman Sachs BDC and Deutsche Strategic Income Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Goldman Sachs BDC||$136.78 million||6.27||$49.54 million||$2.07||10.31|
|Deutsche Strategic Income Trust||N/A||N/A||N/A||N/A||N/A|
Goldman Sachs BDC has higher revenue and earnings than Deutsche Strategic Income Trust.
Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 8.4%. Deutsche Strategic Income Trust pays an annual dividend of $0.53 per share and has a dividend yield of 4.2%. Goldman Sachs BDC pays out 87.0% 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 has increased its dividend for 2 consecutive years. Goldman Sachs BDC is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Goldman Sachs BDC and Deutsche Strategic Income Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Goldman Sachs BDC||46.38%||10.94%||6.19%|
|Deutsche Strategic Income Trust||N/A||N/A||N/A|
Goldman Sachs BDC beats Deutsche Strategic Income Trust on 10 of the 13 factors compared between the two stocks.
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.
About Deutsche Strategic Income Trust
There is no company description available for DWS Strategic Income Trust.
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