Golub Capital BDC (NASDAQ:GBDC) vs. Oxford Square Capital (NASDAQ:OXSQ) Head to Head Contrast

Golub Capital BDC (NASDAQ:GBDC) and Oxford Square Capital (NASDAQ:OXSQ) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.

Insider & Institutional Ownership

42.4% of Golub Capital BDC shares are held by institutional investors. Comparatively, 6.4% of Oxford Square Capital shares are held by institutional investors. 1.4% of Golub Capital BDC shares are held by company insiders. Comparatively, 8.6% of Oxford Square Capital 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.

Dividends

Golub Capital BDC pays an annual dividend of $1.56 per share and has a dividend yield of 11.5%. Oxford Square Capital pays an annual dividend of $0.42 per share and has a dividend yield of 24.3%. Golub Capital BDC pays out 109.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Oxford Square Capital pays out -1,050.0% of its earnings in the form of a dividend. Oxford Square Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Golub Capital BDC and Oxford Square Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Golub Capital BDC	43.25%	10.40%	4.61%
Oxford Square Capital	-6.39%	14.80%	7.88%

Earnings and Valuation

This table compares Golub Capital BDC and Oxford Square Capital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Golub Capital BDC	$870.78 million	4.10	$376.65 million	$1.42	9.53
Oxford Square Capital	$42.68 million	3.30	$5.88 million	($0.04)	-43.13

Golub Capital BDC has higher revenue and earnings than Oxford Square Capital. Oxford Square 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Golub Capital BDC and Oxford Square Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golub Capital BDC	0	2	2	0	2.50
Oxford Square Capital	1	0	0	0	1.00

Golub Capital BDC presently has a consensus price target of $14.83, suggesting a potential upside of 9.59%. Given Golub Capital BDC’s stronger consensus rating and higher probable upside, analysts plainly believe Golub Capital BDC is more favorable than Oxford Square Capital.

Risk and Volatility

Golub Capital BDC has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, Oxford Square Capital has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Summary

Golub Capital BDC beats Oxford Square Capital on 10 of the 16 factors compared between the two stocks.

About Golub Capital BDC

Golub Capital BDC, Inc. (GBDC) is a business development company and operates as an externally managed closed-end non-diversified management investment company. It invests in debt and minority equity investments in middle-market companies that are, in most cases, sponsored by private equity investors. It typically invests in diversified consumer services, automobiles, healthcare technology, insurance, health care equipment and supplies, hotels, restaurants and leisure, healthcare providers and services, IT services and specialty retails. It seeks to invest in the United States. It primarily invests in first lien traditional senior debt, first lien one stop, junior debt and equity, senior secured, one stop, unitranche, second lien, subordinated and mezzanine loans of middle-market companies, and warrants.

About Oxford Square Capital

Oxford Square Capital Corp. is a business development company, operates as a closed-end, non-diversified management investment company. It is a private equity and mezzanine firm. The firm invests in both public and private companies. It invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, common stock and syndicated bank loans. The firm primarily invests in debt and/or equity securities of technology-related companies that operate in the computer software, Internet, information technology infrastructure and services, media, telecommunications and telecommunications equipment, semiconductors, hardware, technology-enabled services, semiconductor capital equipment, medical device technology, diversified technology, and networking systems sectors. It concentrates its investments in companies having annual revenues of less than $200 million and a market capitalization or enterprise value of less than $300 million. The firm invests between $5 million and $30 million per transaction. It seeks to exit its investments within 7 years. It serves as the investment adviser to TICC. Oxford Square Capital Corp., formerly known as TICC Capital Corp., was founded in 2003 and is headquartered in Greenwich, Connecticut.