Sun Hung Kai & Co. Limited (OTCMKTS:SHGKY) vs. Palmer Square Capital BDC (NYSE:PSBD) Critical Survey

Palmer Square Capital BDC (NYSE:PSBD) and Sun Hung Kai & Co. Limited (OTCMKTS:SHGKY) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Dividends

Palmer Square Capital BDC pays an annual dividend of $1.68 per share and has a dividend yield of 10.2%. Sun Hung Kai & Co. Limited pays an annual dividend of $0.14 per share and has a dividend yield of 10.4%.

Valuation and Earnings

This table compares Palmer Square Capital BDC and Sun Hung Kai & Co. Limited’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Palmer Square Capital BDC	$109.18 million	4.92	$107.84 million	N/A	N/A
Sun Hung Kai & Co. Limited	$565.74 million	0.93	-$60.20 million	N/A	N/A

Palmer Square Capital BDC has higher earnings, but lower revenue than Sun Hung Kai & Co. Limited.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Palmer Square Capital BDC and Sun Hung Kai & Co. Limited, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palmer Square Capital BDC	0	3	4	0	2.57
Sun Hung Kai & Co. Limited	0	0	0	0	N/A

Palmer Square Capital BDC currently has a consensus target price of $16.93, suggesting a potential upside of 2.54%. Given Palmer Square Capital BDC’s higher possible upside, analysts plainly believe Palmer Square Capital BDC is more favorable than Sun Hung Kai & Co. Limited.

Insider and Institutional Ownership

6.5% of Palmer Square Capital BDC shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Palmer Square Capital BDC and Sun Hung Kai & Co. Limited’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palmer Square Capital BDC	96.09%	23.31%	9.23%
Sun Hung Kai & Co. Limited	N/A	N/A	N/A

Summary

Palmer Square Capital BDC beats Sun Hung Kai & Co. Limited on 8 of the 10 factors compared between the two stocks.

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.

About Sun Hung Kai & Co. Limited

Sun Hung Kai & Co. Limited, an investment holding company, provides financial services primarily in Hong Kong and the People's Republic of China. The company operates through Consumer Finance, Private Credit, Mortgage Loans, Investment Management, and Group Management and Support segments. It offers unsecured loan to individuals and businesses through branches and online platforms; and first mortgage and second mortgage loans to property owners, as well as customized financing solutions to property investors. The company also engages in the public markets, alternative, and real estate investment activities. In addition, it offers secretarial, financial consultancy, enterprise management, nominee, money lending, asset management, property investment, securities trading, marketing planning, and fund management services. Sun Hung Kai & Co. Limited was incorporated in 1969 and is headquartered in Causeway Bay, Hong Kong. Sun Hung Kai & Co. Limited is a subsidiary of AP Emerald Limited.