Contrasting Goldman Sachs BDC (NYSE:GSBD) and Nuveen Pennsylvania Quality Municipal Income Fund (NYSE:NQP)

Goldman Sachs BDC (NYSE:GSBDGet Rating) and Nuveen Pennsylvania Quality Municipal Income Fund (NYSE:NQPGet Rating) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Earnings and Valuation

This table compares Goldman Sachs BDC and Nuveen Pennsylvania Quality Municipal Income Fund’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Goldman Sachs BDC $346.98 million 5.90 $192.43 million $1.89 10.63
Nuveen Pennsylvania Quality Municipal Income Fund N/A N/A N/A N/A N/A

Goldman Sachs BDC has higher revenue and earnings than Nuveen Pennsylvania Quality Municipal Income Fund.

Insider & Institutional Ownership

27.0% of Goldman Sachs BDC shares are owned by institutional investors. 0.2% of Goldman Sachs BDC shares are owned by insiders. Comparatively, 1.0% of Nuveen Pennsylvania Quality Municipal Income Fund 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.

Dividends

Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 9.0%. Nuveen Pennsylvania Quality Municipal Income Fund pays an annual dividend of $0.66 per share and has a dividend yield of 5.4%. Goldman Sachs BDC pays out 95.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

Goldman Sachs BDC has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Nuveen Pennsylvania Quality Municipal Income Fund has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Goldman Sachs BDC and Nuveen Pennsylvania Quality Municipal Income Fund, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Goldman Sachs BDC 0 1 0 0 2.00
Nuveen Pennsylvania Quality Municipal Income Fund 0 0 0 0 N/A

Goldman Sachs BDC presently has a consensus target price of $19.50, indicating a potential downside of 2.94%. Given Goldman Sachs BDC’s higher possible upside, equities research analysts plainly believe Goldman Sachs BDC is more favorable than Nuveen Pennsylvania Quality Municipal Income Fund.

Profitability

This table compares Goldman Sachs BDC and Nuveen Pennsylvania Quality Municipal Income Fund’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Goldman Sachs BDC 55.46% 13.55% 6.53%
Nuveen Pennsylvania Quality Municipal Income Fund N/A N/A N/A

Summary

Goldman Sachs BDC beats Nuveen Pennsylvania Quality Municipal Income Fund on 8 of the 10 factors compared between the two stocks.

About Goldman Sachs BDC (Get Rating)

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.

About Nuveen Pennsylvania Quality Municipal Income Fund (Get Rating)

Nuveen Pennsylvania Quality Municipal Income Fund is a closed ended fixed income mutual fund launched by Nuveen Investments, Inc. The fund is co-managed by Nuveen Fund Advisors LLC and Nuveen Asset Management, LLC. It invests in the fixed income markets of Pennsylvania. The fund invests in tax exempt municipal bonds, with a rating of Baa/BBB or higher. It employs fundamental analysis, with bottom-up stock picking approach, to create its portfolio. The fund benchmarks the performance of its portfolio against the Standard & Poor's Pennsylvania Municipal Bond Index and Standard & Poor's National Municipal Bond Index. The fund was formerly known a Nuveen Pennsylvania Investment Quality Municipal Fund. Nuveen Pennsylvania Quality Municipal Income Fund was formed on December 20, 1990 and is domiciled in the United States.

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