Head to Head Analysis: Goldman Sachs BDC (NYSE:GSBD) & The Gabelli Multimedia Trust (NYSE:GGT)

Goldman Sachs BDC (NYSE:GSBD) and The Gabelli Multimedia Trust (NYSE:GGT) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Valuation and Earnings

This table compares Goldman Sachs BDC and The Gabelli Multimedia Trust’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Goldman Sachs BDC	$454.91 million	3.68	$195.87 million	$1.92	7.77
The Gabelli Multimedia Trust	N/A	N/A	N/A	N/A	N/A

Goldman Sachs BDC has higher revenue and earnings than The Gabelli Multimedia Trust.

Insider and Institutional Ownership

28.7% of Goldman Sachs BDC shares are owned by institutional investors. Comparatively, 10.6% of The Gabelli Multimedia Trust shares are owned by institutional investors. 0.1% of Goldman Sachs BDC shares are owned by company insiders. Comparatively, 9.6% of The Gabelli Multimedia Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Goldman Sachs BDC and The Gabelli Multimedia Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Goldman Sachs BDC	45.80%	15.68%	7.07%
The Gabelli Multimedia Trust	N/A	N/A	N/A

Volatility & Risk

Goldman Sachs BDC has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, The Gabelli Multimedia Trust has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Goldman Sachs BDC and The Gabelli Multimedia Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Goldman Sachs BDC	1	0	0	0	1.00
The Gabelli Multimedia Trust	0	0	0	0	N/A

Goldman Sachs BDC presently has a consensus price target of $14.00, suggesting a potential downside of 6.10%. Given Goldman Sachs BDC’s higher probable upside, analysts clearly believe Goldman Sachs BDC is more favorable than The Gabelli Multimedia Trust.

Dividends

Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 12.1%. The Gabelli Multimedia Trust pays an annual dividend of $0.88 per share and has a dividend yield of 17.6%. Goldman Sachs BDC pays out 93.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Goldman Sachs BDC beats The Gabelli Multimedia Trust on 6 of the 10 factors compared between the two stocks.

About Goldman Sachs BDC

Goldman Sachs BDC, Inc. is a business development company specializing in middle market and mezzanine investment in private companies. It seeks to make capital appreciation through direct originations of secured debt, senior secured debt, junior secured debt, including first lien, first lien/last-out unitranche and second lien debt, unsecured debt, including mezzanine debt and, to a lesser extent, investments in equities. The fund primarily invests in United States. It seeks to invest between $10 million and $75 million in companies with EBITDA between $5 million and $75 million annually.

About The Gabelli Multimedia Trust

The Gabelli Multimedia Trust Inc. is a closed-ended equity mutual fund launched by GAMCO Investors, Inc. It is managed by Gabelli Funds LLC. The fund invests in the public equity markets across the globe. It invests in stocks, convertible securities, preferred stock, options, and warrants of companies operating across global telecommunications, media, publishing, and entertainment industries. The fund also invests in companies participating in emerging technological advances in interactive services and products. It invests in stocks of companies across market capitalizations. The fund benchmarks the performance of its portfolio against the S&P 500 Index and MSCI World Free Index. It was formerly known as Gabelli Global Multimedia Trust Inc. The Gabelli Multimedia Trust Inc. was formed on November 15, 1994 and is domiciled in the United States.