Palmer Square Capital BDC (NYSE:PSBD – Get Free Report) and Nicholas Financial (NASDAQ:NICK – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.
Institutional & Insider Ownership
6.5% of Palmer Square Capital BDC shares are owned by institutional investors. Comparatively, 39.9% of Nicholas Financial shares are owned by institutional investors. 43.0% of Nicholas Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and target prices for Palmer Square Capital BDC and Nicholas Financial, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Palmer Square Capital BDC | 0 | 3 | 4 | 0 | 2.57 |
Nicholas Financial | 0 | 0 | 0 | 0 | N/A |
Earnings & Valuation
This table compares Palmer Square Capital BDC and Nicholas Financial’s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Palmer Square Capital BDC | $112.22 million | 4.80 | $107.84 million | N/A | N/A |
Nicholas Financial | $44.34 million | 1.96 | -$34.12 million | ($5.01) | -1.37 |
Palmer Square Capital BDC has higher revenue and earnings than Nicholas Financial.
Profitability
This table compares Palmer Square Capital BDC and Nicholas Financial’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Palmer Square Capital BDC | 96.09% | 23.31% | 9.23% |
Nicholas Financial | -134.48% | -50.06% | -42.27% |
Summary
Palmer Square Capital BDC beats Nicholas Financial on 8 of the 10 factors compared between the two stocks.
About Palmer Square Capital BDC
Palmer Square Capital BDC Inc. is an externally managed, non-diversified closed-end management investment company which primarily lends to and invests in corporate debt securities, including small to large private U.S. companies and has elected to be regulated as a business development company. Palmer Square Capital BDC Inc. is based in MISSION WOODS, Kan.
About Nicholas Financial
Nicholas Financial, Inc. operates as a consumer finance company in the United States. The company engages in acquiring and servicing automobile finance installment contracts for the purchase of new and used automobiles and light trucks. It also originates direct consumer loans and sells consumer-finance related products. The company operates branch offices located in Alabama, Florida, Georgia, Idaho, Illinois, Indiana, Kentucky, Michigan, Missouri, Nevada, North Carolina, Nevada, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Utah, and Wisconsin. Nicholas Financial, Inc. was founded in 1985 and is headquartered in Clearwater, Florida.
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