Analyzing Goldman Sachs BDC (NYSE:GSBD) and The Gabelli Multimedia Trust (NYSE:GGT)

The Gabelli Multimedia Trust (NYSE:GGT) and Goldman Sachs BDC (NYSE:GSBD) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.

Volatility & Risk

The Gabelli Multimedia Trust has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Goldman Sachs BDC has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Dividends

The Gabelli Multimedia Trust pays an annual dividend of $0.88 per share and has a dividend yield of 17.8%. Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 12.5%. Goldman Sachs BDC pays out 93.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of recent ratings and price targets for The Gabelli Multimedia Trust and Goldman Sachs BDC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Gabelli Multimedia Trust	0	0	0	0	N/A
Goldman Sachs BDC	1	0	0	0	1.00

Goldman Sachs BDC has a consensus target price of $14.00, suggesting a potential downside of 2.71%. Given Goldman Sachs BDC’s higher possible upside, analysts clearly believe Goldman Sachs BDC is more favorable than The Gabelli Multimedia Trust.

Earnings and Valuation

This table compares The Gabelli Multimedia Trust and Goldman Sachs BDC’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Gabelli Multimedia Trust	$24.01 million	5.82	N/A	N/A	N/A
Goldman Sachs BDC	$224.55 million	7.19	$195.87 million	$1.92	7.49

Goldman Sachs BDC has higher revenue and earnings than The Gabelli Multimedia Trust.

Institutional & Insider Ownership

10.6% of The Gabelli Multimedia Trust shares are owned by institutional investors. Comparatively, 28.7% of Goldman Sachs BDC shares are owned by institutional investors. 9.6% of The Gabelli Multimedia Trust shares are owned by company insiders. Comparatively, 0.1% of Goldman Sachs BDC shares are owned by company 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.

Profitability

This table compares The Gabelli Multimedia Trust and Goldman Sachs BDC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Gabelli Multimedia Trust	N/A	N/A	N/A
Goldman Sachs BDC	45.80%	15.68%	7.07%

Summary

Goldman Sachs BDC beats The Gabelli Multimedia Trust on 7 of the 11 factors compared between the two stocks.

About The Gabelli Multimedia Trust

The Gabelli Multimedia Trust Inc. is a closed-ended equity mutual fund launched by GAMCO Investors, Inc. It is managed by Gabelli Funds LLC. The fund invests in the public equity markets across the globe. It invests in stocks, convertible securities, preferred stock, options, and warrants of companies operating across global telecommunications, media, publishing, and entertainment industries. The fund also invests in companies participating in emerging technological advances in interactive services and products. It invests in stocks of companies across market capitalizations. The fund benchmarks the performance of its portfolio against the S&P 500 Index and MSCI World Free Index. It was formerly known as Gabelli Global Multimedia Trust Inc. The Gabelli Multimedia Trust Inc. was formed on November 15, 1994 and is domiciled in the United States.

About Goldman Sachs BDC

Goldman Sachs BDC, Inc. is a business development company specializing in middle market and mezzanine investment in private companies. It seeks to make capital appreciation through direct originations of secured debt, senior secured debt, junior secured debt, including first lien, first lien/last-out unitranche and second lien debt, unsecured debt, including mezzanine debt and, to a lesser extent, investments in equities. The fund primarily invests in United States. It seeks to invest between $10 million and $75 million in companies with EBITDA between $5 million and $75 million annually.