Financial Comparison: Pearl Diver Credit (NYSE:PDCC) vs. Applied Digital (NASDAQ:APLD)

Applied Digital (NASDAQ:APLD) and Pearl Diver Credit (NYSE:PDCC) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.

Valuation and Earnings

This table compares Applied Digital and Pearl Diver Credit”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Digital	$144.19 million	47.62	-$231.07 million	($0.54)	-45.48
Pearl Diver Credit	N/A	N/A	N/A	N/A	N/A

Pearl Diver Credit has lower revenue, but higher earnings than Applied Digital.

Institutional & Insider Ownership

65.7% of Applied Digital shares are held by institutional investors. 9.5% of Applied Digital shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Applied Digital has a beta of 7.25, meaning that its stock price is 625% more volatile than the S&P 500. Comparatively, Pearl Diver Credit has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Profitability

This table compares Applied Digital and Pearl Diver Credit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Applied Digital	-43.49%	-13.53%	-4.16%
Pearl Diver Credit	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Applied Digital and Pearl Diver Credit, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Digital	1	0	12	2	3.00
Pearl Diver Credit	0	0	0	1	4.00

Applied Digital presently has a consensus price target of $37.00, suggesting a potential upside of 50.65%. Pearl Diver Credit has a consensus price target of $19.50, suggesting a potential upside of 87.05%. Given Pearl Diver Credit’s stronger consensus rating and higher possible upside, analysts clearly believe Pearl Diver Credit is more favorable than Applied Digital.

Summary

Applied Digital beats Pearl Diver Credit on 6 of the 11 factors compared between the two stocks.

About Applied Digital

Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.

About Pearl Diver Credit

Pearl Diver Credit Company Inc. is a newly organized, externally managed, non-diversified, closed-end management investment company. Its primary investment objective is to maximize its portfolio’s total return, with a secondary objective of generating high current income. Pearl Diver Credit Company Inc. is based in NEW YORK.