Palmer Square Capital BDC (NYSE:PSBD) versus S&P Global (NYSE:SPGI) Financial Analysis

Palmer Square Capital BDC (NYSE:PSBD) and S&P Global (NYSE:SPGI) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Palmer Square Capital BDC and S&P Global, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palmer Square Capital BDC	0	5	0	0	2.00
S&P Global	0	2	18	0	2.90

Palmer Square Capital BDC presently has a consensus target price of $10.50, indicating a potential upside of 9.55%. S&P Global has a consensus target price of $515.88, indicating a potential upside of 20.23%. Given S&P Global’s stronger consensus rating and higher possible upside, analysts clearly believe S&P Global is more favorable than Palmer Square Capital BDC.

Earnings and Valuation

This table compares Palmer Square Capital BDC and S&P Global”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Palmer Square Capital BDC	-$26.49 million	-11.09	-$3.17 million	($0.99)	-9.68
S&P Global	$16.12 billion	7.85	$4.47 billion	$16.38	26.19

S&P Global has higher revenue and earnings than Palmer Square Capital BDC. Palmer Square Capital BDC is trading at a lower price-to-earnings ratio than S&P Global, indicating that it is currently the more affordable of the two stocks.

Dividends

Palmer Square Capital BDC pays an annual dividend of $1.44 per share and has a dividend yield of 15.0%. S&P Global pays an annual dividend of $3.88 per share and has a dividend yield of 0.9%. Palmer Square Capital BDC pays out -145.5% of its earnings in the form of a dividend. S&P Global pays out 23.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. S&P Global has raised its dividend for 53 consecutive years. Palmer Square Capital BDC is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Palmer Square Capital BDC has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, S&P Global has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.

Profitability

This table compares Palmer Square Capital BDC and S&P Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palmer Square Capital BDC	-26.73%	11.22%	4.15%
S&P Global	31.37%	17.74%	9.24%

Institutional and Insider Ownership

6.5% of Palmer Square Capital BDC shares are owned by institutional investors. Comparatively, 87.2% of S&P Global shares are owned by institutional investors. 1.1% of Palmer Square Capital BDC shares are owned by insiders. Comparatively, 0.0% of S&P Global shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

S&P Global beats Palmer Square Capital BDC on 14 of the 17 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 S&P Global

S&P Global, Inc. engages in the provision of transparent and independent ratings, benchmarks, analytics, and data to the capital and commodity markets worldwide. It operates through the following segments: Market Intelligence, Ratings, Commodity Insights, Mobility, Indices, and Engineering Solutions. The Market Intelligence segment provides multi-asset-class data and analytics integrated with purpose-built workflow solutions. The Ratings segment is involved in credit ratings, research, and analytics, offering investors and other market participants information, ratings, and benchmarks. The Commodity Insights segment focuses on information and benchmark prices for the commodity and energy markets. The Mobility segment offers solutions serving the full automotive value chain including vehicle manufacturers, automotive suppliers, mobility service providers, retailers, consumers, and finance and insurance companies. The Engineering Solutions segment engages in advanced knowledge discovery technologies, research tools, and software-based engineering decision engines to advance innovation, maximize productivity, improve quality, and reduce risk. The company was founded by James H. McGraw and John A. Hill in 1917 and is headquartered in New York, NY.