Victory Capital (NASDAQ:VCTR) and Barings BDC (NYSE:BBDC) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.
Volatility & Risk
Victory Capital has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500. Comparatively, Barings BDC has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.
13.9% of Victory Capital shares are held by institutional investors. Comparatively, 66.1% of Barings BDC shares are held by institutional investors. 10.2% of Victory Capital shares are held by insiders. Comparatively, 0.3% of Barings BDC shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Victory Capital and Barings BDC’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Victory Capital||$413.41 million||2.62||$63.70 million||$1.46||10.97|
|Barings BDC||$80.22 million||6.44||-$114.28 million||N/A||N/A|
Victory Capital has higher revenue and earnings than Barings BDC.
Barings BDC pays an annual dividend of $0.48 per share and has a dividend yield of 4.8%. Victory Capital does not pay a dividend.
This is a summary of recent ratings and price targets for Victory Capital and Barings BDC, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Victory Capital currently has a consensus target price of $14.50, suggesting a potential downside of 9.49%. Barings BDC has a consensus target price of $11.20, suggesting a potential upside of 11.14%. Given Barings BDC’s stronger consensus rating and higher possible upside, analysts plainly believe Barings BDC is more favorable than Victory Capital.
This table compares Victory Capital and Barings BDC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Victory Capital beats Barings BDC on 8 of the 14 factors compared between the two stocks.
Victory Capital Company Profile
Victory Capital Holdings, Inc., together with its subsidiaries, operates as an independent investment management company in the United States. It offers investment advisory, fund administration, and distribution services through broker-dealers, retirement platforms, and registered investment advisor networks. As of December 31, 2018, its franchises and solutions platform managed a set of 71 investment strategies for a range of institutional and retail clients. The company was founded in 2013 and is headquartered in Brooklyn, Ohio.
Barings BDC Company Profile
Barings BDC, Inc. (NYSE:BBDC) is a business development company specializing in private equity and mezzanine investments. It focuses on leveraged buyouts, management buyouts, ESOPs, change of control transactions, acquisition financings, growth financing, and recapitalizations in lower middle market, mature, and later stage companies. The firm prefers to make investments in many business sectors including manufacturing, distribution, transportation, energy, communications, health services, restaurants, media, and others. It primarily invests in companies located throughout the United States, with an emphasis on the Southeast and Midatlantic. The firm makes equity investments between $1 million and $25 million and debt investments between $5 million and $30 million per transaction, in companies having annual revenues between $20 million and $200 million and EBITDA between $3 million and $35 million and can also co-invest. It typically makes investments between $5 million and $35 million. It primarily invests in senior subordinated debt securities secured by second lien security interests in portfolio company assets, coupled with equity interests. The firm also invests in senior debt securities secured by first lien security interests in portfolio companies. Triangle Capital Corporation was incorporated on October 10, 2006 and is based in Raleigh, North Carolina.
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