Barings BDC (BBDC) versus The Competition Financial Analysis

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Barings BDC (NYSE: BBDC) is one of 54 public companies in the “Investment advice” industry, but how does it weigh in compared to its rivals? We will compare Barings BDC to similar businesses based on the strength of its institutional ownership, earnings, profitability, risk, dividends, valuation and analyst recommendations.

Earnings & Valuation

This table compares Barings BDC and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Barings BDC $123.00 million -$28.65 million 6.48
Barings BDC Competitors $2.48 billion $265.99 million 11.48

Barings BDC’s rivals have higher revenue and earnings than Barings BDC. Barings BDC is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Barings BDC pays an annual dividend of $0.12 per share and has a dividend yield of 1.2%. Barings BDC pays out 7.7% of its earnings in the form of a dividend. As a group, “Investment advice” companies pay a dividend yield of 4.0% and pay out 43.7% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations for Barings BDC and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Barings BDC 0 1 1 0 2.50
Barings BDC Competitors 445 2014 2376 124 2.44

Barings BDC presently has a consensus target price of $13.00, suggesting a potential upside of 29.35%. As a group, “Investment advice” companies have a potential upside of 28.65%. Given Barings BDC’s stronger consensus rating and higher probable upside, equities analysts plainly believe Barings BDC is more favorable than its rivals.

Profitability

This table compares Barings BDC and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Barings BDC -3.56% 9.00% 4.93%
Barings BDC Competitors 15.39% 9.54% 10.74%

Insider & Institutional Ownership

52.7% of Barings BDC shares are held by institutional investors. Comparatively, 46.5% of shares of all “Investment advice” companies are held by institutional investors. 3.5% of Barings BDC shares are held by company insiders. Comparatively, 18.6% of shares of all “Investment advice” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Barings BDC has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Barings BDC’s rivals have a beta of 1.15, suggesting that their average stock price is 15% more volatile than the S&P 500.

Summary

Barings BDC rivals beat Barings BDC on 10 of the 15 factors compared.

Barings BDC Company Profile

Barings BDC, Inc. (NYSE:BBDC) is a business development company specializing in private equity and mezzanine investments. It focuses on leveraged buyouts, management buyouts, ESOPs, change of control transactions, acquisition financings, growth financing, and recapitalizations in lower middle market, mature, and later stage companies. The firm prefers to make investments in many business sectors including manufacturing, distribution, transportation, energy, communications, health services, restaurants, media, and others. It primarily invests in companies located throughout the United States, with an emphasis on the Southeast and Midatlantic. The firm makes equity investments between $1 million and $25 million and debt investments between $5 million and $30 million per transaction, in companies having annual revenues between $20 million and $200 million and EBITDA between $3 million and $35 million and can also co-invest. It typically makes investments between $5 million and $35 million. It primarily invests in senior subordinated debt securities secured by second lien security interests in portfolio company assets, coupled with equity interests. The firm also invests in senior debt securities secured by first lien security interests in portfolio companies. Triangle Capital Corporation was incorporated on October 10, 2006 and is based in Raleigh, North Carolina.

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