Goldman Sachs BDC (NYSE:GSBD – Get Rating) and Invesco Municipal Trust (NYSE:VKQ – Get Rating) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.
This table compares Goldman Sachs BDC and Invesco Municipal Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Goldman Sachs BDC||10.90%||14.24%||6.01%|
|Invesco Municipal Trust||N/A||N/A||N/A|
This is a breakdown of current ratings for Goldman Sachs BDC and Invesco Municipal Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Goldman Sachs BDC||0||4||0||0||2.00|
|Invesco Municipal Trust||0||0||0||0||N/A|
Institutional & Insider Ownership
28.4% of Goldman Sachs BDC shares are held by institutional investors. Comparatively, 22.8% of Invesco Municipal Trust shares are held by institutional investors. 0.1% of Goldman Sachs BDC shares are held by company insiders. Comparatively, 5.4% of Invesco Municipal Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Goldman Sachs BDC and Invesco Municipal Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Goldman Sachs BDC||$56.64 million||25.14||$55.00 million||$0.41||31.73|
|Invesco Municipal Trust||N/A||N/A||N/A||N/A||N/A|
Goldman Sachs BDC has higher revenue and earnings than Invesco Municipal Trust.
Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 13.8%. Invesco Municipal Trust pays an annual dividend of $0.51 per share and has a dividend yield of 5.3%. Goldman Sachs BDC pays out 439.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility & Risk
Goldman Sachs BDC has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Invesco Municipal Trust has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.
Goldman Sachs BDC beats Invesco Municipal Trust on 8 of the 10 factors compared between the two stocks.
About Goldman Sachs BDC
Goldman Sachs BDC, Inc. invests in middle market companies located in the US. The fund targets companies operating in the fields software, health technology information technology, commercial services and textiles with an investment size of $25 to $75 million and an EBITDA of $5 to $75 million. It provides financing in the form of senior secured debt, unitranche debt, junior secured, mezzanine debt and equity for acquisitions, refinancing, growth, LBOs, dividend recapitalization and restructuring transactions.
About Invesco Municipal Trust
Invesco Municipal Trust operates as a diversified, closed-end management investment company. Its investment objective is to seek to provide a high level of current income exempt from federal income tax consistent with preservation of capital. The company was founded on September 27, 1991 and is headquartered in Atlanta, GA.
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