Financial Comparison: Palmer Square Capital BDC (PSBD) and Its Rivals

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

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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Palmer Square Capital BDC	$143.51 million	$47.67 million	28.04
Palmer Square Capital BDC Competitors	$327.83 million	$148.50 million	14.51

Palmer Square Capital BDC’s rivals 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 rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Palmer Square Capital BDC pays an annual dividend of $1.44 per share and has a dividend yield of 10.3%. 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 9.3% and pay out 105.8% of their earnings in the form of a dividend.

Risk & Volatility

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Palmer Square Capital BDC and its rivals, 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	1341	1310	22	2.38

Palmer Square Capital BDC currently has a consensus target price of $14.25, suggesting a potential upside of 1.64%. As a group, “FIN – SBIC&COMMRL” companies have a potential downside of 2.18%. Given Palmer Square Capital BDC’s stronger consensus rating and higher probable upside, equities analysts clearly believe Palmer Square Capital BDC is more favorable than its rivals.

Profitability

This table compares Palmer Square Capital BDC and its rivals’ 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%

Summary

Palmer Square Capital BDC rivals beat Palmer Square Capital BDC on 9 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.