Pearl Diver Credit (NYSE:PDCC) and Applied Digital (NASDAQ:APLD) Head-To-Head Analysis

Pearl Diver Credit (NYSE:PDCC) and Applied Digital (NASDAQ:APLD) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Profitability

This table compares Pearl Diver Credit and Applied Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pearl Diver Credit	N/A	N/A	N/A
Applied Digital	-43.49%	-13.53%	-4.16%

Volatility and Risk

Pearl Diver Credit has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Applied Digital has a beta of 7.25, indicating that its stock price is 625% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Pearl Diver Credit and Applied Digital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pearl Diver Credit	0	0	0	1	4.00
Applied Digital	1	0	12	2	3.00

Pearl Diver Credit presently has a consensus target price of $19.50, suggesting a potential upside of 84.40%. Applied Digital has a consensus target price of $37.00, suggesting a potential upside of 46.88%. Given Pearl Diver Credit’s stronger consensus rating and higher probable upside, research analysts clearly believe Pearl Diver Credit is more favorable than Applied Digital.

Valuation & Earnings

This table compares Pearl Diver Credit and Applied Digital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pearl Diver Credit	N/A	N/A	N/A	N/A	N/A
Applied Digital	$144.19 million	48.84	-$231.07 million	($0.54)	-46.65

Pearl Diver Credit has higher earnings, but lower revenue than Applied Digital.

Institutional and Insider Ownership

65.7% of Applied Digital shares are held by institutional investors. 9.5% of Applied Digital 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.

Summary

Applied Digital beats Pearl Diver Credit on 6 of the 11 factors compared between the two stocks.

About Pearl Diver Credit

Pearl Diver Credit Company Inc. is a newly organized, externally managed, non-diversified, closed-end management investment company. Its primary investment objective is to maximize its portfolio’s total return, with a secondary objective of generating high current income. Pearl Diver Credit Company Inc. is based in NEW YORK.

About Applied Digital

Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.