Contrasting Golub Capital BDC (GBDC) and TICC Capital (TICC)

Golub Capital BDC (NASDAQ: GBDC) and TICC Capital (NASDAQ:TICC) are both small-cap financials companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Dividends

Golub Capital BDC pays an annual dividend of $1.28 per share and has a dividend yield of 7.1%. TICC Capital pays an annual dividend of $0.80 per share and has a dividend yield of 13.8%. Golub Capital BDC pays out 88.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TICC Capital pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TICC Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Golub Capital BDC and TICC Capital’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Golub Capital BDC $137.76 million 7.78 $82.28 million $1.45 12.41
TICC Capital $69.28 million 4.31 $110.36 million $1.05 5.52

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Golub Capital BDC and TICC Capital, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Golub Capital BDC 0 3 0 0 2.00
TICC Capital 3 0 1 0 1.50

Golub Capital BDC presently has a consensus price target of $19.50, suggesting a potential upside of 8.39%. TICC Capital has a consensus price target of $5.50, suggesting a potential downside of 5.17%. Given Golub Capital BDC’s stronger consensus rating and higher possible upside, research analysts clearly believe Golub Capital BDC is more favorable than TICC Capital.

Volatility & Risk

Golub Capital BDC has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, TICC Capital has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.

Institutional & Insider Ownership

40.6% of Golub Capital BDC shares are owned by institutional investors. Comparatively, 15.9% of TICC Capital shares are owned by institutional investors. 2.4% of Golub Capital BDC shares are owned by insiders. Comparatively, 5.9% of TICC 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.

Profitability

This table compares Golub Capital BDC and TICC Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Golub Capital BDC 58.06% 7.90% 4.06%
TICC Capital 94.98% 7.64% 4.95%

Summary

Golub Capital BDC beats TICC Capital on 9 of the 16 factors compared between the two stocks.

About Golub Capital BDC

Golub Capital BDC, Inc. is an externally managed, non-diversified, closed-end, management investment company. The Company’s investment objective is to generate current income and capital appreciation by investing primarily in senior secured and one stop loans of the United States middle-market companies. It may also selectively invest in second lien and subordinated loans of, and warrants and minority equity securities in the United States middle-market companies. The Company seeks to create a portfolio that includes primarily senior secured and one stop loans by primarily investing in the securities of the United States middle-market companies. It generally invests in securities that have been rated below investment grade by independent rating agencies or that would be rated below investment grade if they were rated. The Company’s investment activities are managed by its investment advisor, GC Advisors LLC (GC Advisors).

About TICC Capital

TICC Capital Corp. is a closed-end, non-diversified management investment company. The Company’s investment objective is to maximize its portfolio’s total return. The Company primarily focuses on seeking current income by investing primarily in corporate debt securities. The Company’s debt investments may include syndicated loans and bilateral loans. The Company holds interests in structured finance investments, including collateralized loan obligation (CLO) investment vehicles that own debt securities. CLO investments may also include warehouse facilities, which are financing structures intended to aggregate loans that may be used to form the basis of a CLO vehicle. The Company may also invest in publicly traded debt and/or equity securities. Its portfolio includes its investments in various industries, such as structured finance, telecommunication services, business services, printing and publishing, and financial intermediaries. TICC Management, LLC is its investment advisor.

Receive News & Ratings for Golub Capital BDC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Golub Capital BDC and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

How to Trade on Forex – 8 Steps for Beginners
How to Trade on Forex – 8 Steps for Beginners
Super Nintendo World Theme Park Officially Starts Construction
Super Nintendo World Theme Park Officially Starts Construction
Amazon and Apple Join Foxconn to Secure Chip Business of Toshiba
Amazon and Apple Join Foxconn to Secure Chip Business of Toshiba
Camera Zooms In and Can Recognize Faces
Camera Zooms In and Can Recognize Faces
Netflix Could See 150 Million Worldwide Subscribers
Netflix Could See 150 Million Worldwide Subscribers
LeEco Cutting Over 70% of Staff in U.S. Amidst Pull Back
LeEco Cutting Over 70% of Staff in U.S. Amidst Pull Back


Leave a Reply

© 2006-2018 Ticker Report. Google+.