Head-To-Head Comparison: Binah Capital Group (NASDAQ:BCG) versus Palmer Square Capital BDC (NYSE:PSBD)

Palmer Square Capital BDC (NYSE:PSBD) and Binah Capital Group (NASDAQ:BCG) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.

Profitability

This table compares Palmer Square Capital BDC and Binah Capital Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palmer Square Capital BDC	-26.73%	11.22%	4.15%
Binah Capital Group	2.17%	195.38%	5.95%

Institutional & Insider Ownership

6.5% of Palmer Square Capital BDC shares are held by institutional investors. Comparatively, 5.0% of Binah Capital Group shares are held by institutional investors. 1.1% of Palmer Square Capital BDC shares are held by company insiders. Comparatively, 7.8% of Binah Capital Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Palmer Square Capital BDC has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Binah Capital Group has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Palmer Square Capital BDC and Binah Capital Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palmer Square Capital BDC	0	5	0	0	2.00
Binah Capital Group	1	0	0	0	1.00

Palmer Square Capital BDC presently has a consensus target price of $10.50, indicating a potential upside of 9.35%. Given Palmer Square Capital BDC’s stronger consensus rating and higher probable upside, research analysts clearly believe Palmer Square Capital BDC is more favorable than Binah Capital Group.

Earnings and Valuation

This table compares Palmer Square Capital BDC and Binah Capital Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Palmer Square Capital BDC	-$26.49 million	-11.11	-$3.17 million	($0.99)	-9.70
Binah Capital Group	$187.14 million	0.10	$2.31 million	$0.18	5.83

Binah Capital Group has higher revenue and earnings than Palmer Square Capital BDC. Palmer Square Capital BDC is trading at a lower price-to-earnings ratio than Binah Capital Group, indicating that it is currently the more affordable of the two stocks.

Summary

Binah Capital Group beats Palmer Square Capital BDC on 9 of the 13 factors compared between the two stocks.

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.

About Binah Capital Group

Binah Capital Group, Inc., together with its subsidiaries, operates in the wealth management industry. The company provides access to stock, bond, exchange-traded fund, and options execution services; and research, compliance, supervision, and accounting and related services for financial advisors. It also offers mutual funds and insurance products, as well as alternative investments, such as non-traded real estate investment trusts, unit trusts, and fixed and variable annuities. The company was founded in 2016 and is headquartered in Albany, New York. Binah Capital Group, Inc. operates as a subsidiary of MHC Securities, LLC.