Contrasting Goldman Sachs BDC (NYSE:GSBD) & Nuveen Nasdaq 100 Dynamic Overwrite Fund (NASDAQ:QQQX)

Goldman Sachs BDC (NYSE:GSBDGet Rating) and Nuveen Nasdaq 100 Dynamic Overwrite Fund (NASDAQ:QQQXGet Rating) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Insider and Institutional Ownership

26.8% of Goldman Sachs BDC shares are owned by institutional investors. Comparatively, 21.1% of Nuveen Nasdaq 100 Dynamic Overwrite Fund shares are owned by institutional investors. 0.1% of Goldman Sachs 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Goldman Sachs BDC and Nuveen Nasdaq 100 Dynamic Overwrite Fund, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Goldman Sachs BDC 0 1 0 0 2.00
Nuveen Nasdaq 100 Dynamic Overwrite Fund 0 0 0 0 N/A

Goldman Sachs BDC presently has a consensus target price of $18.50, suggesting a potential upside of 0.49%. Given Goldman Sachs BDC’s higher probable upside, equities analysts clearly believe Goldman Sachs BDC is more favorable than Nuveen Nasdaq 100 Dynamic Overwrite Fund.

Risk and Volatility

Goldman Sachs BDC has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, Nuveen Nasdaq 100 Dynamic Overwrite Fund has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Dividends

Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 9.8%. Nuveen Nasdaq 100 Dynamic Overwrite Fund pays an annual dividend of $1.84 per share and has a dividend yield of 7.8%. Goldman Sachs BDC pays out 107.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Nuveen Nasdaq 100 Dynamic Overwrite Fund has raised its dividend for 2 consecutive years.

Valuation & Earnings

This table compares Goldman Sachs BDC and Nuveen Nasdaq 100 Dynamic Overwrite Fund’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Goldman Sachs BDC $346.98 million 5.40 $192.43 million $1.68 10.95
Nuveen Nasdaq 100 Dynamic Overwrite Fund N/A N/A N/A N/A N/A

Goldman Sachs BDC has higher revenue and earnings than Nuveen Nasdaq 100 Dynamic Overwrite Fund.

Profitability

This table compares Goldman Sachs BDC and Nuveen Nasdaq 100 Dynamic Overwrite Fund’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Goldman Sachs BDC 50.23% 13.66% 6.53%
Nuveen Nasdaq 100 Dynamic Overwrite Fund N/A N/A N/A

Summary

Goldman Sachs BDC beats Nuveen Nasdaq 100 Dynamic Overwrite Fund on 9 of the 11 factors compared between the two stocks.

Goldman Sachs BDC Company Profile (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.

Nuveen Nasdaq 100 Dynamic Overwrite Fund Company Profile (Get Rating)

Nuveen Nasdaq 100 Dynamic Overwrite Fund is a closed-ended equity indexed mutual fund launched by Nuveen Investments, Inc. The fund is co-managed by Nuveen Asset Management, LLC and Nuveen Fund Advisors LLC. It invests in the public equity markets of the United States. The fund seeks to invest in stocks of companies operating across diversified sectors. It primarily invests in the stocks of large-cap companies. The fund also invests through index call options. It seeks to replicate the performance of its portfolio against the NASDAQ 100 Index. The fund was previously known as NASDAQ Premium Income & Growth Fund Inc. Nuveen Nasdaq 100 Dynamic Overwrite Fund was formed on January 30, 2007 and is domiciled in the United States.

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