Financial Comparison: Carlyle Secured Lending (NASDAQ:CGBD) vs. Galaxy Digital (NASDAQ:GLXY)

Carlyle Secured Lending (NASDAQ:CGBD) and Galaxy Digital (NASDAQ:GLXY) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Analyst Ratings

This is a summary of current ratings and target prices for Carlyle Secured Lending and Galaxy Digital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carlyle Secured Lending	0	4	3	0	2.43
Galaxy Digital	2	2	10	0	2.57

Carlyle Secured Lending presently has a consensus price target of $12.50, indicating a potential upside of 10.86%. Galaxy Digital has a consensus price target of $38.83, indicating a potential upside of 90.88%. Given Galaxy Digital’s stronger consensus rating and higher probable upside, analysts clearly believe Galaxy Digital is more favorable than Carlyle Secured Lending.

Volatility and Risk

Carlyle Secured Lending has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Galaxy Digital has a beta of 5.06, suggesting that its share price is 406% more volatile than the S&P 500.

Valuation & Earnings

This table compares Carlyle Secured Lending and Galaxy Digital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carlyle Secured Lending	$255.57 million	3.07	$69.97 million	$0.51	22.11
Galaxy Digital	$61.36 billion	0.13	-$241.35 million	($0.65)	-31.30

Carlyle Secured Lending has higher earnings, but lower revenue than Galaxy Digital. Galaxy Digital is trading at a lower price-to-earnings ratio than Carlyle Secured Lending, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Carlyle Secured Lending and Galaxy Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carlyle Secured Lending	14.26%	8.70%	3.83%
Galaxy Digital	-0.75%	-6.10%	-1.67%

Institutional and Insider Ownership

24.5% of Carlyle Secured Lending shares are held by institutional investors. 0.3% of Carlyle Secured Lending shares are held by insiders. Comparatively, 51.5% of Galaxy Digital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Carlyle Secured Lending beats Galaxy Digital on 8 of the 14 factors compared between the two stocks.

About Carlyle Secured Lending

Carlyle Secured Lending, Inc. is business development company specializing in first lien debt, senior secured loans, second lien senior secured loan unsecured debt, mezzanine debt and investments in equities. It specializes in directly investing. It specializes in middle market. It targets healthcare and pharmaceutical, aerospace and defense, high tech industries, business services, software, beverage food and tobacco, hotel gamming and leisure, banking finance insurance and in real estate sector. The fund seeks to invest across United States of America, Luxembourg, Cayman Islands, Cyprus, and United Kingdom. It invests in companies with EBITDA between $25 million and $100 million.

About Galaxy Digital

Galaxy Digital Holdings Ltd. is a financial services and an investment management company, which engages in the digital asset, cryptocurrency, and block chain technology sectors. It operates through the following segments: Trading, Principal Investment, Asset Management, Investment Banking, Mining, and Corporate & Other. The Trading segment manages positions in cryptocurrency and other liquid digital assets contributed to the business at the outset and continues to invest and trade in those and related assets. The Principal Investment segment includes portfolio of private principal investments across the block chain ecosystem, including early- and later-stage equity, pre-launch network contributions, and other structured alternative investments. The Asset Management segment manages capital on behalf of third parties in exchange for management fees and performance-based compensation. The Investment Banking segment offers the spectrum of investment banking, including, but not limited to general corporate advisory, mergers and acquisition, transaction advisory, restructuring and capital rising. The Mining segment focuses to provide financial services for North American miners, through its partnerships. The Corporate & Other consists of the partnership’s unallocated corporate overhead and other unallocated costs not identifiable to any of the reportable segments. The company was founded by Michael Edward Novogratz on February 10, 2006 and is headquartered in New York, NY.