Palmer Square Capital BDC (PSBD) vs. The Competition Critical Survey

Palmer Square Capital BDC (NYSE:PSBD) is one of 42 publicly-traded companies in the “FIN – SBIC&COMMRL” industry, but how does it contrast to its peers? We will compare Palmer Square Capital BDC to similar companies based on the strength of its dividends, earnings, risk, valuation, profitability, analyst recommendations and institutional ownership.

Risk and Volatility

Palmer Square Capital BDC has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Palmer Square Capital BDC’s peers have a beta of -0.62, indicating that their average stock price is 162% less volatile than the S&P 500.

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	11.72%	11.04%	4.18%
Palmer Square Capital BDC Competitors	33.40%	11.34%	5.02%

Insider & Institutional Ownership

6.5% of Palmer Square Capital BDC shares are held by institutional investors. Comparatively, 27.7% of shares of all “FIN – SBIC&COMMRL” companies are held by institutional investors. 1.0% of Palmer Square Capital BDC shares are held by insiders. Comparatively, 4.0% of shares of all “FIN – SBIC&COMMRL” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company 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 10.2%. Palmer Square Capital BDC pays out 288.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “FIN – SBIC&COMMRL” companies pay a dividend yield of 9.4% and pay out 105.8% of their earnings in the form of a dividend.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Palmer Square Capital BDC	$143.51 million	$47.67 million	28.29
Palmer Square Capital BDC Competitors	$291.21 million	$148.50 million	14.51

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Palmer Square Capital BDC and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palmer Square Capital BDC	0	2	2	0	2.50
Palmer Square Capital BDC Competitors	253	1330	1308	21	2.38

Palmer Square Capital BDC currently has a consensus price target of $14.13, indicating a potential downside of 0.14%. As a group, “FIN – SBIC&COMMRL” companies have a potential downside of 1.98%. Given Palmer Square Capital BDC’s stronger consensus rating and higher probable upside, analysts plainly believe Palmer Square Capital BDC is more favorable than its peers.

Summary

Palmer Square Capital BDC peers beat Palmer Square Capital BDC on 9 of the 15 factors compared.

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.