Reviewing Palmer Square Capital BDC (PSBD) & Its Rivals

Palmer Square Capital BDC (NYSE:PSBD) is one of 42 public companies in the “FIN – SBIC&COMMRL” industry, but how does it weigh in compared to its rivals? We will compare Palmer Square Capital BDC to related companies based on the strength of its profitability, valuation, earnings, analyst recommendations, dividends, risk and institutional ownership.

Dividends

Palmer Square Capital BDC pays an annual dividend of $1.44 per share and has a dividend yield of 10.3%. Palmer Square Capital BDC pays out 288.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “FIN – SBIC&COMMRL” companies pay a dividend yield of 9.3% and pay out 105.8% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings for Palmer Square Capital BDC and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palmer Square Capital BDC	0	2	2	0	2.50
Palmer Square Capital BDC Competitors	253	1340	1310	22	2.38

Palmer Square Capital BDC currently has a consensus target price of $14.25, indicating a potential upside of 1.57%. As a group, “FIN – SBIC&COMMRL” companies have a potential downside of 2.61%. Given Palmer Square Capital BDC’s stronger consensus rating and higher probable upside, equities analysts plainly believe Palmer Square Capital BDC is more favorable than its rivals.

Risk & Volatility

Palmer Square Capital BDC has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Palmer Square Capital BDC’s rivals have a beta of 0.00, meaning that their average stock price is 100% less volatile than the S&P 500.

Insider & Institutional Ownership

6.5% of Palmer Square Capital BDC shares are held by institutional investors. Comparatively, 27.7% of shares of all “FIN – SBIC&COMMRL” companies are held by institutional investors. 1.0% of Palmer Square Capital BDC shares are held by company insiders. Comparatively, 3.9% of shares of all “FIN – SBIC&COMMRL” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Palmer Square Capital BDC	11.72%	11.04%	4.18%
Palmer Square Capital BDC Competitors	33.40%	11.34%	5.02%

Earnings and Valuation

This table compares Palmer Square Capital BDC and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Palmer Square Capital BDC	$143.51 million	$47.67 million	28.06
Palmer Square Capital BDC Competitors	$335.90 million	$148.50 million	14.59

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

Summary

Palmer Square Capital BDC rivals beat Palmer Square Capital BDC on 9 of the 15 factors compared.

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.