Palmer Square Capital BDC (NYSE:PSBD) versus Site Centers (NYSE:SITC) Head to Head Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Site Centers	219.18%	40.56%	27.81%
Palmer Square Capital BDC	-26.73%	11.22%	4.15%

Risk and Volatility

Site Centers has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Palmer Square Capital BDC has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Site Centers and Palmer Square Capital BDC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Site Centers	1	3	0	0	1.75
Palmer Square Capital BDC	0	5	0	0	2.00

Site Centers presently has a consensus price target of $6.75, suggesting a potential upside of 127.66%. Palmer Square Capital BDC has a consensus price target of $10.75, suggesting a potential upside of 3.85%. Given Site Centers’ higher possible upside, equities research analysts plainly believe Site Centers is more favorable than Palmer Square Capital BDC.

Dividends

Site Centers pays an annual dividend of $0.52 per share and has a dividend yield of 17.5%. Palmer Square Capital BDC pays an annual dividend of $1.44 per share and has a dividend yield of 13.9%. Site Centers pays out 21.6% of its earnings in the form of a dividend. Palmer Square Capital BDC pays out -145.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings and Valuation

This table compares Site Centers and Palmer Square Capital BDC”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Site Centers	$71.27 million	2.18	$177.86 million	$2.41	1.23
Palmer Square Capital BDC	-$26.49 million	-11.98	-$3.17 million	($0.99)	-10.46

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

Insider and Institutional Ownership

88.7% of Site Centers shares are owned by institutional investors. Comparatively, 6.5% of Palmer Square Capital BDC shares are owned by institutional investors. 0.2% of Site Centers 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Site Centers beats Palmer Square Capital BDC on 12 of the 15 factors compared between the two stocks.

About Site Centers

SITE Centers is an owner and manager of open-air shopping centers located in suburban, high household income communities. The Company is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol SITC.

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.