Sun Hung Kai & Co. Limited (OTCMKTS:SHGKY) versus Palmer Square Capital BDC (NYSE:PSBD) Financial Survey

Sun Hung Kai & Co. Limited (OTCMKTS:SHGKY) and Palmer Square Capital BDC (NYSE:PSBD) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Insider and Institutional Ownership

6.5% of Palmer Square Capital BDC shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Sun Hung Kai & Co. Limited and Palmer Square Capital BDC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sun Hung Kai & Co. Limited	0	0	0	0	N/A
Palmer Square Capital BDC	0	3	4	0	2.57

Palmer Square Capital BDC has a consensus target price of $16.93, suggesting a potential upside of 2.16%. Given Palmer Square Capital BDC’s higher possible upside, analysts clearly believe Palmer Square Capital BDC is more favorable than Sun Hung Kai & Co. Limited.

Profitability

This table compares Sun Hung Kai & Co. Limited and Palmer Square Capital BDC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sun Hung Kai & Co. Limited	N/A	N/A	N/A
Palmer Square Capital BDC	96.09%	23.31%	9.23%

Earnings and Valuation

This table compares Sun Hung Kai & Co. Limited and Palmer Square Capital BDC’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sun Hung Kai & Co. Limited	$565.74 million	0.93	-$60.20 million	N/A	N/A
Palmer Square Capital BDC	$109.18 million	4.94	$107.84 million	N/A	N/A

Palmer Square Capital BDC has lower revenue, but higher earnings than Sun Hung Kai & Co. Limited.

Dividends

Sun Hung Kai & Co. Limited pays an annual dividend of $0.14 per share and has a dividend yield of 10.4%. Palmer Square Capital BDC pays an annual dividend of $1.68 per share and has a dividend yield of 10.1%.

Summary

Palmer Square Capital BDC beats Sun Hung Kai & Co. Limited on 8 of the 10 factors compared between the two stocks.

About Sun Hung Kai & Co. Limited

Sun Hung Kai & Co. Limited, an investment holding company, provides financial services in Hong Kong and the People's Republic of China. The company operates through Consumer Finance, Private Credit, Mortgage Loans, Investment Management, and Group Management and Support segments. It offers unsecured loan to individuals and businesses through branches and online platforms; funding solutions to corporates, investment funds, and high net worth individuals; and first mortgage and second mortgage loans to property owners, as well as customized financing solutions to property investors. The company also engages in the public markets, alternative, and real estate investment activities. In addition, it offers secretarial, financial consultancy, nominee, loan guarantee, money lending, asset management, property investment, securities trading, and fund management services. Sun Hung Kai & Co. Limited was incorporated in 1969 and is headquartered in Causeway Bay, Hong Kong. Sun Hung Kai & Co. Limited is a subsidiary of AP Emerald Limited.

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.