Analyzing 180 Degree Capital (TURN) and Golub Capital BDC (GBDC)

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

Dividends

Golub Capital BDC pays an annual dividend of $1.28 per share and has a dividend yield of 6.9%. 180 Degree Capital does not pay a dividend. Golub Capital BDC pays out 102.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Golub Capital BDC has increased its dividend for 2 consecutive years.

Risk and Volatility

180 Degree Capital has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, Golub Capital BDC has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for 180 Degree Capital and Golub Capital BDC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
180 Degree Capital 0 0 0 0 N/A
Golub Capital BDC 0 0 1 0 3.00

Golub Capital BDC has a consensus price target of $21.00, indicating a potential upside of 13.33%. Given Golub Capital BDC’s higher possible upside, analysts plainly believe Golub Capital BDC is more favorable than 180 Degree Capital.

Insider and Institutional Ownership

33.8% of 180 Degree Capital shares are owned by institutional investors. Comparatively, 36.7% of Golub Capital BDC shares are owned by institutional investors. 3.0% of 180 Degree Capital shares are owned by company insiders. Comparatively, 10.7% of Golub Capital BDC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares 180 Degree Capital and Golub Capital BDC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
180 Degree Capital N/A N/A N/A
Golub Capital BDC 60.34% 7.92% 4.20%

Earnings & Valuation

This table compares 180 Degree Capital and Golub Capital BDC’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
180 Degree Capital $1.79 million 35.47 -$16.36 million N/A N/A
Golub Capital BDC $137.76 million 8.07 $82.28 million $1.25 14.82

Golub Capital BDC has higher revenue and earnings than 180 Degree Capital.

Summary

Golub Capital BDC beats 180 Degree Capital on 12 of the 14 factors compared between the two stocks.

About 180 Degree Capital

180 Degree Capital Corp. is a venture capital firm specializing in early stage investments. The firm seeks to invest in tiny technology including microsystems and transformative nanotechnology companies and applications in the cleantech, biotechnology, energy, healthcare, and electronic sectors. It prefers to invest in biology innovation, where intersecting with innovations in areas such as electronics, physics, materials science, chemistry, information technology, engineering and mathematics. It seeks companies which employ or intend to employ technology that is at the microscale or smaller and if the employment of that technology is material to its business plan. The firm may make follow-on investments and seeks to co-invest. It prefers to hold membership on boards of directors or serve as observers to the boards of directors on its portfolio companies. 180 Degree Capital Corp. was founded in August 1981 and is based in Montclair, New Jersey with addition office in Los Angeles, California.

About Golub Capital BDC

Golub Capital BDC, Inc. is a business development company and operates as an externally managed closed-end non-diversified management investment company. It invests in debt and minority equity investments in middle-market companies that are, in most cases, sponsored by private equity investors. The company seeks to invest in the United States. It primarily invests in senior secured, one stop, unitranche, second lien, subordinated and mezzanine loans of middle-market companies, and warrants.

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