Critical Comparison: MDB Capital (NASDAQ:MDBH) versus Palmer Square Capital BDC (NYSE:PSBD)

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

Institutional & Insider Ownership

0.3% of MDB Capital shares are owned by institutional investors. Comparatively, 6.5% of Palmer Square Capital BDC shares are owned by institutional investors. 55.8% of MDB Capital shares are owned by company insiders. Comparatively, 1.1% of Palmer Square Capital BDC shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

MDB Capital has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Palmer Square Capital BDC has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MDB Capital	$4.91 million	5.35	-$21.25 million	($2.18)	-1.17
Palmer Square Capital BDC	$124.39 million	2.51	-$3.17 million	($0.99)	-10.28

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

Analyst Ratings

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

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

Palmer Square Capital BDC has a consensus target price of $10.50, suggesting a potential upside of 3.19%. Given Palmer Square Capital BDC’s stronger consensus rating and higher probable upside, analysts clearly believe Palmer Square Capital BDC is more favorable than MDB Capital.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MDB Capital	N/A	-39.77%	-38.48%
Palmer Square Capital BDC	-26.73%	11.22%	4.15%

Summary

Palmer Square Capital BDC beats MDB Capital on 8 of the 13 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 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.