Financial Analysis: Crescent Capital BDC (NASDAQ:CCAP) versus Perella Weinberg Partners (NASDAQ:PWP)

Perella Weinberg Partners (NASDAQ:PWPGet Rating) and Crescent Capital BDC (NASDAQ:CCAPGet Rating) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.

Volatility & Risk

Perella Weinberg Partners has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500. Comparatively, Crescent Capital BDC has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

Insider & Institutional Ownership

45.5% of Perella Weinberg Partners shares are owned by institutional investors. Comparatively, 35.2% of Crescent Capital BDC shares are owned by institutional investors. 48.5% of Perella Weinberg Partners shares are owned by insiders. Comparatively, 1.1% of Crescent Capital BDC shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Perella Weinberg Partners and Crescent Capital BDC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Perella Weinberg Partners 0 1 2 0 2.67
Crescent Capital BDC 0 0 4 0 3.00

Perella Weinberg Partners currently has a consensus price target of $11.67, indicating a potential upside of 24.64%. Crescent Capital BDC has a consensus price target of $18.75, indicating a potential upside of 36.46%. Given Crescent Capital BDC’s stronger consensus rating and higher probable upside, analysts clearly believe Crescent Capital BDC is more favorable than Perella Weinberg Partners.

Profitability

This table compares Perella Weinberg Partners and Crescent Capital BDC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Perella Weinberg Partners 2.92% 35.55% 16.57%
Crescent Capital BDC 24.25% 7.76% 3.81%

Dividends

Perella Weinberg Partners pays an annual dividend of $0.28 per share and has a dividend yield of 3.0%. Crescent Capital BDC pays an annual dividend of $1.64 per share and has a dividend yield of 11.9%. Perella Weinberg Partners pays out -62.2% of its earnings in the form of a dividend. Crescent Capital BDC pays out 195.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares Perella Weinberg Partners and Crescent Capital BDC’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Perella Weinberg Partners $801.66 million 1.01 -$9.42 million ($0.45) -20.80
Crescent Capital BDC $93.99 million 4.52 $83.63 million $0.84 16.36

Crescent Capital BDC has lower revenue, but higher earnings than Perella Weinberg Partners. Perella Weinberg Partners is trading at a lower price-to-earnings ratio than Crescent Capital BDC, indicating that it is currently the more affordable of the two stocks.

Summary

Crescent Capital BDC beats Perella Weinberg Partners on 9 of the 16 factors compared between the two stocks.

About Perella Weinberg Partners

(Get Rating)

Perella Weinberg Partners, an independent investment banking company, provides strategic and financial advice services in the United States and internationally. The company offers advice services related to mission-critical strategic and financial decisions, mergers and acquisition execution, shareholder and defense advisory, capital raising, structure and restructuring, capital markets advisory, energy underwriting, and equity research. It serves public multinational corporations, mid-sized public and private companies, individual entrepreneurs, private and institutional investors, creditor committees, and government institutions in various industries comprising consumer and retail; energy; financial institutions; healthcare; industrials; and technology, media, and telecommunications. The company was founded in 2006 and is based in New York, New York.

About Crescent Capital BDC

(Get Rating)

Crescent Capital BDC, Inc. is as a business development company private equity / buyouts and loan fund. It specializes in directly investing. It specializes in middle market. The fund seeks to invest in United States.

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