Head-To-Head Analysis: Golub Capital BDC (NASDAQ:GBDC) versus Amalgamated Financial (NASDAQ:AMAL)

Amalgamated Financial (NASDAQ:AMAL) and Golub Capital BDC (NASDAQ:GBDC) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Valuation & Earnings

This table compares Amalgamated Financial and Golub 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
Amalgamated Financial	$323.80 million	3.03	$106.43 million	$3.32	9.89
Golub Capital BDC	$870.78 million	4.07	$376.65 million	$1.42	9.46

Golub Capital BDC has higher revenue and earnings than Amalgamated Financial. Golub Capital 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.

Dividends

Amalgamated Financial pays an annual dividend of $0.56 per share and has a dividend yield of 1.7%. Golub Capital BDC pays an annual dividend of $1.56 per share and has a dividend yield of 11.6%. Amalgamated Financial pays out 16.9% of its earnings in the form of a dividend. Golub Capital BDC pays out 109.9% 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.

Profitability

This table compares Amalgamated Financial and Golub Capital BDC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amalgamated Financial	22.97%	14.75%	1.30%
Golub Capital BDC	43.25%	10.40%	4.61%

Risk & Volatility

Amalgamated Financial has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Golub Capital BDC has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500.

Insider & Institutional Ownership

75.9% of Amalgamated Financial shares are held by institutional investors. Comparatively, 42.4% of Golub Capital BDC shares are held by institutional investors. 1.3% of Amalgamated Financial shares are held by company insiders. Comparatively, 1.4% of Golub Capital BDC shares are held 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.

Analyst Ratings

This is a summary of current ratings and recommmendations for Amalgamated Financial and Golub Capital BDC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amalgamated Financial	0	2	1	0	2.33
Golub Capital BDC	0	2	2	0	2.50

Amalgamated Financial currently has a consensus price target of $33.50, suggesting a potential upside of 2.06%. Golub Capital BDC has a consensus price target of $14.83, suggesting a potential upside of 10.37%. Given Golub Capital BDC’s stronger consensus rating and higher probable upside, analysts plainly believe Golub Capital BDC is more favorable than Amalgamated Financial.

Summary

Golub Capital BDC beats Amalgamated Financial on 10 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 Golub Capital BDC

Golub Capital BDC, Inc. (GBDC) is a business development company and operates as an externally managed closed-end non-diversified management investment company. It invests in debt and minority equity investments in middle-market companies that are, in most cases, sponsored by private equity investors. It typically invests in diversified consumer services, automobiles, healthcare technology, insurance, health care equipment and supplies, hotels, restaurants and leisure, healthcare providers and services, IT services and specialty retails. It seeks to invest in the United States. It primarily invests in first lien traditional senior debt, first lien one stop, junior debt and equity, senior secured, one stop, unitranche, second lien, subordinated and mezzanine loans of middle-market companies, and warrants.