Golub Capital BDC (GBDC) Competitors

Golub Capital BDC (NASDAQ:GBDC) and Ares Capital (NASDAQ:ARCC) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, community ranking, valuation, institutional ownership, risk, earnings, media sentiment and analyst recommendations.

Do analysts rate GBDC or ARCC?

Golub Capital BDC presently has a consensus target price of $16.38, suggesting a potential upside of 4.10%. Ares Capital has a consensus target price of $22.43, suggesting a potential downside of 5.24%. Given Golub Capital BDC's higher possible upside, research analysts clearly believe Golub Capital BDC is more favorable than Ares Capital.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golub Capital BDC	0 Sell rating(s)	2 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.60
Ares Capital	0 Sell rating(s)	2 Hold rating(s)	6 Buy rating(s)	1 Strong Buy rating(s)	2.89

Does the media prefer GBDC or ARCC?

In the previous week, Ares Capital had 16 more articles in the media than Golub Capital BDC. MarketBeat recorded 22 mentions for Ares Capital and 6 mentions for Golub Capital BDC. Ares Capital's average media sentiment score of 1.12 beat Golub Capital BDC's score of 0.87 indicating that Ares Capital is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Golub Capital BDC	3 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Ares Capital	14 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do insiders & institutionals hold more shares of GBDC or ARCC?

42.4% of Golub Capital BDC shares are owned by institutional investors. Comparatively, 27.4% of Ares Capital shares are owned by institutional investors. 3.6% of Golub Capital BDC shares are owned by company insiders. Comparatively, 0.6% of Ares Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Does the MarketBeat Community prefer GBDC or ARCC?

Ares Capital received 109 more outperform votes than Golub Capital BDC when rated by MarketBeat users. Likewise, 62.52% of users gave Ares Capital an outperform vote while only 55.60% of users gave Golub Capital BDC an outperform vote.

Company	Underperform	Outperform
Golub Capital BDC	Outperform Votes 303 55.60%	Underperform Votes 242 44.40%
Ares Capital	Outperform Votes 412 62.52%	Underperform Votes 247 37.48%

Which has better valuation and earnings, GBDC or ARCC?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Golub Capital BDC	$724.68M	5.74	$273.79M	$1.41	11.16
Ares Capital	$2.61B	5.85	$1.52B	$2.60	9.10

Is GBDC or ARCC a better dividend stock?

Golub Capital BDC pays an annual dividend of $1.56 per share and has a dividend yield of 9.9%. Ares Capital pays an annual dividend of $1.92 per share and has a dividend yield of 8.1%. Golub Capital BDC pays out 110.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ares Capital pays out 73.8% of its earnings in the form of a dividend.

Which has more risk and volatility, GBDC or ARCC?

Golub Capital BDC has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, Ares Capital has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Is GBDC or ARCC more profitable?

Ares Capital has a net margin of 53.71% compared to Golub Capital BDC's net margin of 37.78%. Ares Capital's return on equity of 12.06% beat Golub Capital BDC's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Golub Capital BDC	37.78%	11.86%	5.44%
Ares Capital	53.71%	12.06%	5.74%

Summary

Ares Capital beats Golub Capital BDC on 16 of the 21 factors compared between the two stocks.