Head-To-Head Contrast: Goldman Sachs BDC (NYSE:GSBD) & The Mexico Fund (NYSE:MXF)


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The Mexico Fund (NYSE:MXF) and Goldman Sachs BDC (NYSE:GSBD) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Analyst Ratings

This is a summary of recent ratings for The Mexico Fund and Goldman Sachs BDC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Mexico Fund 0 0 0 0 N/A
Goldman Sachs BDC 0 2 1 0 2.33

Goldman Sachs BDC has a consensus target price of $15.92, suggesting a potential downside of 21.01%. Given Goldman Sachs BDC’s higher possible upside, analysts clearly believe Goldman Sachs BDC is more favorable than The Mexico Fund.

Profitability

This table compares The Mexico Fund and Goldman Sachs BDC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Mexico Fund N/A N/A N/A
Goldman Sachs BDC 9.56% 11.79% 4.83%

Risk and Volatility

The Mexico Fund has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Goldman Sachs BDC has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.

Dividends

The Mexico Fund pays an annual dividend of $0.18 per share and has a dividend yield of 1.2%. Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 8.9%. Goldman Sachs BDC pays out 90.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Goldman Sachs BDC has increased its dividend for 1 consecutive years. Goldman Sachs BDC is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

13.8% of Goldman Sachs BDC shares are held by institutional investors. 2.2% of The Mexico Fund shares are held by insiders. Comparatively, 0.3% of Goldman Sachs BDC shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares The Mexico Fund and Goldman Sachs BDC’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Mexico Fund N/A N/A N/A N/A N/A
Goldman Sachs BDC $147.26 million 13.90 $36.15 million $1.98 10.18

Goldman Sachs BDC has higher revenue and earnings than The Mexico Fund.

Summary

Goldman Sachs BDC beats The Mexico Fund on 10 of the 12 factors compared between the two stocks.

The Mexico Fund Company Profile

The Mexico Fund, Inc. is a closed-ended equity mutual fund launched and managed by Impulsora del Fondo México, S.C. It primarily invests in public equity markets of Mexico. The fund seeks to invest its portfolio across diversified sectors. The Mexico Fund, Inc. was formed in June 01, 1981 and is domiciled in Maryland, United States.

Goldman Sachs BDC Company Profile

Goldman Sachs BDC, Inc. is a business development company specializing in middle market and mezzanine investment in private companies. It seeks to make capital appreciation through direct originations of secured debt, senior secured debt, junior secured debt, including first lien, first lien/last-out unitranche and second lien debt, unsecured debt, including mezzanine debt and, to a lesser extent, investments in equities. The fund primarily invests in United States. It seeks to invest between $10 million and $75 million in companies with EBITDA between $5 million and $75 million annually.

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