Plumas Bancorp (NASDAQ:PLBC) and Palmer Square Capital BDC (NYSE:PSBD) Head to Head Analysis

Plumas Bancorp (NASDAQ:PLBC) and Palmer Square Capital BDC (NYSE:PSBD) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations and price targets for Plumas Bancorp and Palmer Square Capital BDC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Plumas Bancorp	0	0	1	0	3.00
Palmer Square Capital BDC	0	3	4	0	2.57

Plumas Bancorp currently has a consensus price target of $40.00, indicating a potential upside of 12.77%. Palmer Square Capital BDC has a consensus price target of $16.93, indicating a potential upside of 2.54%. Given Plumas Bancorp’s stronger consensus rating and higher probable upside, equities analysts plainly believe Plumas Bancorp is more favorable than Palmer Square Capital BDC.

Dividends

Plumas Bancorp pays an annual dividend of $1.08 per share and has a dividend yield of 3.0%. Palmer Square Capital BDC pays an annual dividend of $1.68 per share and has a dividend yield of 10.2%. Plumas Bancorp pays out 22.6% of its earnings in the form of a dividend. Plumas Bancorp has increased its dividend for 4 consecutive years.

Profitability

This table compares Plumas Bancorp and Palmer Square Capital BDC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Plumas Bancorp	33.12%	21.53%	1.79%
Palmer Square Capital BDC	96.09%	23.31%	9.23%

Earnings & Valuation

This table compares Plumas Bancorp and Palmer Square Capital BDC’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Plumas Bancorp	$85.31 million	2.45	$29.78 million	$4.78	7.42
Palmer Square Capital BDC	$112.22 million	4.79	$107.84 million	N/A	N/A

Palmer Square Capital BDC has higher revenue and earnings than Plumas Bancorp.

Insider & Institutional Ownership

41.7% of Plumas Bancorp shares are held by institutional investors. Comparatively, 6.5% of Palmer Square Capital BDC shares are held by institutional investors. 9.0% of Plumas Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Palmer Square Capital BDC beats Plumas Bancorp on 9 of the 14 factors compared between the two stocks.

About Plumas Bancorp

Plumas Bancorp operates as the bank holding company for the Plumas Bank that provides various banking products and services for small and middle market businesses, and individuals in Northeastern California and Northwestern Nevada. The company accepts various deposits, such as checking, money market checking, business sweep, public funds sweep, savings, time deposit, and retirement accounts. Its loan portfolio comprises of term real estate, commercial, and industrial term loans; government-guaranteed and agricultural loans, as well as credit lines; consumer, automobile, and home equity loans; land development and construction loans; and small business administration loans. In addition, the company provides remote deposit, telephone and mobile banking, internet banking with bill-pay options, cashier's check, bank-by-mail, automated teller machine, night depository, safe deposit box, direct deposit, electronic funds transfer, and other customary banking services. Plumas Bancorp was founded in 1980 and is headquartered in Reno, Nevada.

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.