Head to Head Comparison: Barings Bdc (NYSE:BBDC) vs. Gabelli Multimedia Trust (NYSE:GGT)

Gabelli Multimedia Trust (NYSE:GGT) and Barings Bdc (NYSE:BBDC) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Earnings and Valuation

This table compares Gabelli Multimedia Trust and Barings Bdc”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gabelli Multimedia Trust	$43.32 million	3.15	N/A	N/A	N/A
Barings Bdc	$279.21 million	3.22	$101.92 million	$0.85	10.10

Barings Bdc has higher revenue and earnings than Gabelli Multimedia Trust.

Analyst Ratings

This is a breakdown of recent recommendations for Gabelli Multimedia Trust and Barings Bdc, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gabelli Multimedia Trust	0	0	0	0	0.00
Barings Bdc	0	4	1	0	2.20

Barings Bdc has a consensus target price of $9.50, indicating a potential upside of 10.66%. Given Barings Bdc’s stronger consensus rating and higher probable upside, analysts clearly believe Barings Bdc is more favorable than Gabelli Multimedia Trust.

Dividends

Gabelli Multimedia Trust pays an annual dividend of $0.88 per share and has a dividend yield of 21.5%. Barings Bdc pays an annual dividend of $1.04 per share and has a dividend yield of 12.1%. Barings Bdc pays out 122.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Barings Bdc has raised its dividend for 3 consecutive years.

Profitability

This table compares Gabelli Multimedia Trust and Barings Bdc’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gabelli Multimedia Trust	N/A	N/A	N/A
Barings Bdc	32.45%	10.08%	4.33%

Institutional & Insider Ownership

10.6% of Gabelli Multimedia Trust shares are owned by institutional investors. Comparatively, 44.1% of Barings Bdc shares are owned by institutional investors. 8.0% of Gabelli Multimedia Trust shares are owned by company insiders. Comparatively, 0.6% of Barings Bdc shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Gabelli Multimedia Trust has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Barings Bdc has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Summary

Barings Bdc beats Gabelli Multimedia Trust on 10 of the 14 factors compared between the two stocks.

About Gabelli Multimedia Trust

The Gabelli Multimedia Trust Inc. is a closed-ended equity mutual fund launched by GAMCO Investors, Inc. It is managed by Gabelli Funds LLC. The fund invests in the public equity markets across the globe. It invests in stocks, convertible securities, preferred stock, options, and warrants of companies operating across global telecommunications, media, publishing, and entertainment industries. The fund also invests in companies participating in emerging technological advances in interactive services and products. It invests in stocks of companies across market capitalizations. The fund benchmarks the performance of its portfolio against the S&P 500 Index and MSCI World Free Index. It was formerly known as Gabelli Global Multimedia Trust Inc. The Gabelli Multimedia Trust Inc. was formed on November 15, 1994 and is domiciled in the United States.

About Barings Bdc

Barings BDC, Inc. is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. It seeks to invest primarily in senior secured loans, first lien debt, unitranche, second lien debt, subordinated debt, equity co-investments and senior secured private debt investments in private middle-market companies that operate across a wide range of industries. It specializes in mezzanine, leveraged buyouts, management buyouts, ESOPs, change of control transactions, acquisition financings, growth financing, and recapitalizations in lower middle market, mature, and later stage companies. It invests in manufacturing and distribution; business services and technology; transportation and logistics; consumer product and services. It invests in United States. It invests in companies with EBITDA of $10 million to $75 million, typically in private equity sponsor backed.