Analyzing Pearl Diver Credit (NYSE:PDCC) and MDB Capital (NASDAQ:MDBH)

MDB Capital (NASDAQ:MDBH) and Pearl Diver Credit (NYSE:PDCC) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for MDB Capital and Pearl Diver Credit, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MDB Capital	1	0	0	0	1.00
Pearl Diver Credit	0	0	0	1	4.00

Pearl Diver Credit has a consensus price target of $19.50, indicating a potential upside of 27.40%. Given Pearl Diver Credit’s stronger consensus rating and higher possible upside, analysts clearly believe Pearl Diver Credit is more favorable than MDB Capital.

Risk & Volatility

MDB Capital has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Pearl Diver Credit has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.

Profitability

This table compares MDB Capital and Pearl Diver Credit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MDB Capital	N/A	17.68%	17.20%
Pearl Diver Credit	N/A	N/A	N/A

Valuation & Earnings

This table compares MDB Capital and Pearl Diver Credit”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MDB Capital	$2.16 million	15.77	$11.69 million	$0.93	3.61
Pearl Diver Credit	N/A	N/A	N/A	N/A	N/A

MDB Capital has higher revenue and earnings than Pearl Diver Credit.

Insider and Institutional Ownership

0.4% of MDB Capital shares are owned by institutional investors. 55.8% of MDB Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

MDB Capital beats Pearl Diver Credit on 6 of the 9 factors compared between the two stocks.

About MDB Capital

MDB Capital Holdings, LLC, through its subsidiaries, primarily operates as a broker-dealer. The company operates through two segments, Broker Dealer & Intellectual Property Service, and Technology Development. The Broker Dealer & Intellectual Property Service segment operates as a full-service broker dealer that focuses on conducting private and public securities offerings, as well as providing research services for investment banking due diligence. The Technology Development segment engages in the synthetic biology technology development business. The company was founded in 1997 and is based in Addison, Texas.

About Pearl Diver Credit

Pearl Diver Credit Company Inc. is a newly organized, externally managed, non-diversified, closed-end management investment company. Its primary investment objective is to maximize its portfolio’s total return, with a secondary objective of generating high current income. Pearl Diver Credit Company Inc. is based in NEW YORK.