Critical Analysis: Crescent Capital BDC (NASDAQ:CCAP) versus Investcorp Credit Management BDC (NASDAQ:ICMB)

Crescent Capital BDC (NASDAQ:CCAP) and Investcorp Credit Management BDC (NASDAQ:ICMB) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.

Insider & Institutional Ownership

49.5% of Crescent Capital BDC shares are held by institutional investors. Comparatively, 7.8% of Investcorp Credit Management BDC shares are held by institutional investors. 1.2% of Crescent Capital BDC shares are held by company insiders. Comparatively, 1.3% of Investcorp Credit Management BDC shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Crescent Capital BDC has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Investcorp Credit Management BDC has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Valuation & Earnings

This table compares Crescent Capital BDC and Investcorp Credit Management BDC”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crescent Capital BDC	$26.38 million	15.67	$34.51 million	$0.41	27.37
Investcorp Credit Management BDC	$17.40 million	1.02	-$8.85 million	($1.37)	-0.90

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

Profitability

This table compares Crescent Capital BDC and Investcorp Credit Management BDC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crescent Capital BDC	9.26%	9.34%	4.04%
Investcorp Credit Management BDC	-118.71%	2.26%	0.75%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Crescent Capital BDC and Investcorp Credit Management BDC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crescent Capital BDC	1	3	2	0	2.17
Investcorp Credit Management BDC	1	0	0	0	1.00

Crescent Capital BDC presently has a consensus price target of $13.90, indicating a potential upside of 23.89%. Given Crescent Capital BDC’s stronger consensus rating and higher possible upside, equities analysts clearly believe Crescent Capital BDC is more favorable than Investcorp Credit Management BDC.

Summary

Crescent Capital BDC beats Investcorp Credit Management BDC on 12 of the 14 factors compared between the two stocks.

About Crescent Capital BDC

Crescent Capital BDC, Inc. is as a business development company private equity / buyouts and loan fund. It specializes in directly investing. It specializes in middle market. The fund seeks to invest in United States.

About Investcorp Credit Management BDC

Investcorp Credit Management BDC, Inc. is a business development company specializing in loan, mezzanine, middle market, growth capital, acquisitions, market/product expansion, organic growth, refinancings and recapitalization investments. It also selectively invests in mezzanine loans/structured equity and in the equity of portfolio companies through warrants and other instruments, in most cases taking such upside participation interests as part of a broader investment relationship. The fund typically invests in United States and Europe. Within United States, the fund seeks to invest in Midatlantic, Midwest, Northeast, Southeast, and West Coast regions. The fund primarily invests in cable and satellites; consumer services; healthcare equipment and services; industrials; information technology; telecommunication services; and utilities sectors. The fund seeks to invest between $5 million to $25 million in companies that have annual revenues of at least $50 million with EBITDA at least $15 million.