Barings BDC (NYSE:BBDC) and AlTi Global (NASDAQ:ALTI) Head-To-Head Survey

Barings BDC (NYSE:BBDC) and AlTi Global (NASDAQ:ALTI) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Barings BDC and AlTi Global, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barings BDC	0	2	1	0	2.33
AlTi Global	0	0	0	1	4.00

Barings BDC presently has a consensus target price of $9.58, indicating a potential downside of 3.64%. AlTi Global has a consensus target price of $9.00, indicating a potential upside of 99.12%. Given AlTi Global’s stronger consensus rating and higher possible upside, analysts plainly believe AlTi Global is more favorable than Barings BDC.

Earnings & Valuation

This table compares Barings BDC and AlTi Global’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Barings BDC	$143.94 million	7.32	$128.00 million	$1.23	8.09
AlTi Global	$250.88 million	2.16	-$162.61 million	($1.83)	-2.47

Barings BDC has higher earnings, but lower revenue than AlTi Global. AlTi Global is trading at a lower price-to-earnings ratio than Barings BDC, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

44.1% of Barings BDC shares are owned by institutional investors. Comparatively, 3.6% of AlTi Global shares are owned by institutional investors. 0.5% of Barings BDC shares are owned by company insiders. Comparatively, 22.1% of AlTi Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Barings BDC has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, AlTi Global has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.

Profitability

This table compares Barings BDC and AlTi Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Barings BDC	45.35%	10.77%	4.78%
AlTi Global	-29.75%	7.45%	4.93%

Summary

Barings BDC beats AlTi Global on 8 of the 15 factors compared between the two stocks.

About Barings BDC

Barings BDC, Inc. is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. It seeks to invest primarily in senior secured loans, first lien debt, unitranche, second lien debt, subordinated debt, equity co-investments and senior secured private debt investments in private middle-market companies that operate across a wide range of industries. It specializes in mezzanine, leveraged buyouts, management buyouts, ESOPs, change of control transactions, acquisition financings, growth financing, and recapitalizations in lower middle market, mature, and later stage companies. It invests in manufacturing and distribution; business services and technology; transportation and logistics; consumer product and services. It invests in United States. It invests in companies with EBITDA of $10 million to $75 million, typically in private equity sponsor backed.

About AlTi Global

AlTi Global, Inc. provides wealth and asset management services individuals, families, foundations, and institutions in the United States, the United Kingdom, and internationally. It operates through two segments, Wealth Management and Strategic Alternatives. The company offers discretionary investment management, non-discretionary investment advisory, and investment management and advisory services. It also provides trust and administration services, such as entity formation and management; creating or modifying trust instruments and administrative practices to meet beneficiary needs; corporate, trustee-executor, and fiduciary services; provision of directors and company secretarial services; administering entity ownership of intellectual property rights; advisory and administration services in connection with investments in marine and aviation assets; and administering entity ownership of fine art and collectibles. In addition, the company offers family office services comprising bookkeeping and back office services, private foundation management and grant making, oversight of trust administration, financial tracking and reporting, cash flow management and bill pay, and other financial services, as well as clients estate and wealth planning, family governance and education, and philanthropic and strategic services. It also provides ancillary fund management services, including investments, financial planning and strategy, sales and marketing, and back and middle office infrastructure and administration. The company offers strategic advisory, corporate advisory, brokerage, and placement agency services; structures, arranges, and provides investors with co-investment opportunities in various alternative assets; manages and advises public and private investment funds, as well as alternatives platform. The company was formerly known as Alvarium Tiedemann Holdings, Inc. and changed its name to AlTi Global, Inc. in April 2023. The company is based in New York, New York.