Head-To-Head Review: Amalgamated Financial (NASDAQ:AMAL) & Investcorp Credit Management BDC (NASDAQ:ICMB)

Amalgamated Financial (NASDAQ:AMAL) and Investcorp Credit Management BDC (NASDAQ:ICMB) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Institutional & Insider Ownership

75.9% of Amalgamated Financial shares are owned by institutional investors. Comparatively, 7.8% of Investcorp Credit Management BDC shares are owned by institutional investors. 1.3% of Amalgamated Financial shares are owned by company insiders. Comparatively, 1.2% of Investcorp Credit Management BDC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Amalgamated Financial pays an annual dividend of $0.56 per share and has a dividend yield of 2.1%. Investcorp Credit Management BDC pays an annual dividend of $0.48 per share and has a dividend yield of 16.7%. Amalgamated Financial pays out 16.8% of its earnings in the form of a dividend. Investcorp Credit Management BDC pays out 88.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Amalgamated Financial has raised its dividend for 4 consecutive years and Investcorp Credit Management BDC has raised its dividend for 1 consecutive years.

Profitability

This table compares Amalgamated Financial and Investcorp Credit Management BDC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amalgamated Financial	23.60%	15.21%	1.31%
Investcorp Credit Management BDC	38.05%	5.59%	2.07%

Volatility and Risk

Amalgamated Financial has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Investcorp Credit Management BDC has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Valuation and Earnings

This table compares Amalgamated Financial and Investcorp Credit Management BDC”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amalgamated Financial	$434.51 million	1.82	$106.43 million	$3.34	7.85
Investcorp Credit Management BDC	$23.88 million	1.73	$7.79 million	$0.54	5.31

Amalgamated Financial has higher revenue and earnings than Investcorp Credit Management BDC. Investcorp Credit Management BDC is trading at a lower price-to-earnings ratio than Amalgamated Financial, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Amalgamated Financial and Investcorp Credit Management BDC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amalgamated Financial	1	1	1	0	2.00
Investcorp Credit Management BDC	1	0	0	0	1.00

Amalgamated Financial currently has a consensus price target of $33.00, suggesting a potential upside of 25.86%. Given Amalgamated Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Amalgamated Financial is more favorable than Investcorp Credit Management BDC.

Summary

Amalgamated Financial beats Investcorp Credit Management BDC on 13 of the 17 factors compared between the two stocks.

About Amalgamated Financial

Amalgamated Financial Corp. operates as the bank holding company for Amalgamated Bank that provides commercial and retail banking, investment management, and trust and custody services for commercial and retail customers in the United States. The company accepts various deposit products, including non-interest bearing accounts, interest-bearing demand products, savings accounts, money market accounts, NOW accounts, and certificates of deposit. It also provides various commercial loans comprising commercial and industrial, multifamily mortgage, and commercial real estate loans; residential mortgage loans; and retail loans, such as residential real estate, consumer solar, and consumer and other loans. In addition, the company offers online banking, bill payment, online cash management, and safe deposit box rental services; debit and ATM cards; and trust, custody, and investment management services comprising asset safekeeping, corporate actions, income collections, proxy, account transition, asset transfers, and conversion management services. Further, it provides investment products, such as funds spanning equity, fixed-income, real estate, and alternative investment products; and brokerage, asset management, and insurance products. Amalgamated Financial Corp. was founded in 1923 and is headquartered in New York, New York.

About Investcorp Credit Management BDC

Investcorp Credit Management BDC, Inc. is a business development company specializing in loan, mezzanine, middle market, growth capital, acquisitions, market/product expansion, organic growth, refinancings and recapitalization investments. It also selectively invests in mezzanine loans/structured equity and in the equity of portfolio companies through warrants and other instruments, in most cases taking such upside participation interests as part of a broader investment relationship. The fund typically invests in United States and Europe. Within United States, the fund seeks to invest in Midatlantic, Midwest, Northeast, Southeast, and West Coast regions. The fund primarily invests in cable and satellites; consumer services; healthcare equipment and services; industrials; information technology; telecommunication services; and utilities sectors. The fund seeks to invest between $5 million to $25 million in companies that have annual revenues of at least $50 million with EBITDA at least $15 million.