Head to Head Analysis: Crescent Capital BDC (NASDAQ:CCAP) versus UBS Group (NYSE:UBS)

UBS Group (NYSE:UBS) and Crescent Capital BDC (NASDAQ:CCAP) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Valuation and Earnings

This table compares UBS Group and Crescent Capital BDC”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UBS Group	$76.12 billion	2.24	$7.77 billion	$2.94	18.57
Crescent Capital BDC	$167.29 million	2.19	$34.51 million	($0.09)	-110.22

UBS Group has higher revenue and earnings than Crescent Capital BDC. Crescent Capital BDC is trading at a lower price-to-earnings ratio than UBS Group, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

UBS Group has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Crescent Capital BDC has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.

Dividends

UBS Group pays an annual dividend of $0.36 per share and has a dividend yield of 0.7%. Crescent Capital BDC pays an annual dividend of $1.36 per share and has a dividend yield of 13.7%. UBS Group pays out 12.2% of its earnings in the form of a dividend. Crescent Capital BDC pays out -1,511.1% 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. UBS Group has raised its dividend for 5 consecutive years and Crescent Capital BDC has raised its dividend for 1 consecutive years. Crescent Capital BDC is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares UBS Group and Crescent Capital BDC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UBS Group	13.10%	10.50%	0.57%
Crescent Capital BDC	-2.02%	9.02%	3.82%

Analyst Ratings

This is a breakdown of recent ratings and price targets for UBS Group and Crescent Capital BDC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UBS Group	2	5	4	0	2.18
Crescent Capital BDC	0	6	1	0	2.14

UBS Group currently has a consensus target price of $60.30, indicating a potential upside of 10.43%. Crescent Capital BDC has a consensus target price of $12.62, indicating a potential upside of 27.27%. Given Crescent Capital BDC’s higher probable upside, analysts plainly believe Crescent Capital BDC is more favorable than UBS Group.

Insider and Institutional Ownership

49.5% of Crescent Capital BDC shares are owned by institutional investors. 1.0% of UBS Group shares are owned by insiders. Comparatively, 1.2% of Crescent Capital BDC shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

UBS Group beats Crescent Capital BDC on 11 of the 17 factors compared between the two stocks.

About UBS Group

UBS Group AG provides financial advice and solutions to private, institutional, and corporate clients worldwide. It operates through five divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, Investment Bank, and Non-core and Legacy. The company offers investment advice, estate and wealth planning, investing, corporate and banking, and investment management, as well as mortgage, securities-based, and structured lending solutions. It also provides personal banking products and services, such as deposits, credit and debit cards, and online and mobile banking, as well as lending, investments, retirement, and wealth management services; and corporate and institutional solutions, including equity and debt capital markets, syndicated and structured credit, private placements, leasing, traditional financing, and transaction banking solutions for payment and cash management services, trade and export finance, and global custody solutions. In addition, the company offers equities, fixed income, hedge funds, real estate and private markets, indexed and alternative beta strategies, asset allocation and currency investment strategies, customized multi-asset solutions, advisory and fiduciary services, and multi-manager hedge fund solutions and advisory services. Further, it advises clients on strategic business opportunities and helps them raise capital to fund their activities; enables its clients to buy, sell, and finance securities on capital markets and to manage their risks and liquidity; distributes, trades in, finances, and clears cash equities and equity-linked products; structures, originates, and distributes new equity and equity-linked issues; and originates, distributes, manages risk, and provides liquidity in foreign exchange, rates, credit and precious metals. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is headquartered in Zurich, Switzerland.

About Crescent Capital BDC

Crescent Capital BDC, Inc. is as a business development company private equity / buyouts and loan fund. It specializes in directly investing. It specializes in middle market. The fund seeks to invest in United States.