Base Carbon (OTCMKTS:BCBNF) vs. Goldman Sachs BDC (NYSE:GSBD) Critical Analysis

Base Carbon (OTCMKTS:BCBNF) and Goldman Sachs BDC (NYSE:GSBD) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Base Carbon and Goldman Sachs BDC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Base Carbon	0	1	0	0	2.00
Goldman Sachs BDC	4	3	0	0	1.43

Goldman Sachs BDC has a consensus target price of $8.50, suggesting a potential upside of 2.98%. Given Goldman Sachs BDC’s higher possible upside, analysts plainly believe Goldman Sachs BDC is more favorable than Base Carbon.

Profitability

This table compares Base Carbon and Goldman Sachs BDC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Base Carbon	N/A	-17.07%	-15.76%
Goldman Sachs BDC	9.21%	10.56%	4.43%

Earnings and Valuation

This table compares Base Carbon and Goldman Sachs BDC”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Base Carbon	$190,000.00	241.93	$250,000.00	($0.03)	-15.26
Goldman Sachs BDC	$365.57 million	2.51	$119.27 million	$0.26	31.75

Goldman Sachs BDC has higher revenue and earnings than Base Carbon. Base Carbon is trading at a lower price-to-earnings ratio than Goldman Sachs BDC, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

28.7% of Goldman Sachs BDC shares are held by institutional investors. 0.1% of Goldman Sachs BDC shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Goldman Sachs BDC beats Base Carbon on 10 of the 12 factors compared between the two stocks.

About Base Carbon

Base Carbon Inc. is a Canada-based climate finance company focused on the global carbon markets. The company provides capital, project development support and market access to initiatives designed to reduce or remove greenhouse-gas emissions and generate carbon credits. Base Carbon works with carbon project developers and other market participants to help finance and commercialize environmental projects. Its activities may include evaluating project opportunities, providing development capital, supporting the issuance of verified carbon credits and facilitating their sale to organizations seeking to address their emissions.

About Goldman Sachs BDC

Goldman Sachs BDC, Inc. is a business development company that provides financing to middle-market companies, primarily in the United States. It seeks to support businesses that may need capital for growth, acquisitions, refinancing, or other corporate purposes. The company invests mainly in debt securities, including senior secured, unitranche, second-lien, and subordinated loans. It may also make equity and equity-related investments, often alongside its lending activities. Goldman Sachs BDC is externally managed by Goldman Sachs Asset Management, part of Goldman Sachs.