Noah (NYSE:NOAH) & Goldman Sachs BDC (GSBD) Head to Head Analysis

Noah (NYSE: NOAH) and Goldman Sachs BDC (NYSE:GSBD) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.

Insider and Institutional Ownership

46.9% of Noah shares are held by institutional investors. Comparatively, 36.5% of Goldman Sachs BDC shares are held by institutional investors. 0.3% 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 is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Noah 29.74% 18.11% 11.84%
Goldman Sachs BDC 32.19% 11.34% 6.65%

Dividends

Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 8.2%. Noah does not pay a dividend. Goldman Sachs BDC pays out 160.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares Noah 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
Noah $362.03 million 6.31 $92.73 million $1.80 22.44
Goldman Sachs BDC $125.11 million 7.00 $40.65 million $1.12 19.49

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

Analyst Recommendations

This is a breakdown of recent recommendations for Noah and Goldman Sachs BDC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Noah 0 0 0 0 N/A
Goldman Sachs BDC 0 3 3 0 2.50

Goldman Sachs BDC has a consensus price target of $22.60, indicating a potential upside of 3.53%. Given Goldman Sachs BDC’s higher possible upside, analysts plainly believe Goldman Sachs BDC is more favorable than Noah.

Risk and Volatility

Noah has a beta of 2.59, indicating that its stock price is 159% more volatile than the S&P 500. Comparatively, Goldman Sachs BDC has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Summary

Noah beats Goldman Sachs BDC on 9 of the 15 factors compared between the two stocks.

About Noah

Noah Holdings Limited is a wealth management service provider with a focus on global wealth investment and asset allocation services for high net worth individuals and enterprises in China. The Company operates through three segments: wealth management, asset management and Internet finance. It also provides Internet finance services to clients in China. It provides direct access to China’s high net worth population. With approximately 1,100 relationship managers in over 130 branch offices, its coverage network includes China’s regions where high net worth population is concentrated, including the Yangtze River Delta, the Pearl River Delta, the Bohai Rim and other regions. Its product offerings consist primarily of over-the-counter (OTC) wealth management and OTC asset management products, mutual fund products and asset management plans originated in China and designed to cater to the needs of China’s high net worth population.

About Goldman Sachs BDC

Goldman Sachs BDC, Inc. is a closed-end management investment company. The Company is a specialty finance company, which is focused on lending to middle-market companies. The Company’s investment objective is to generate current income and, to a lesser extent, capital appreciation primarily through direct originations of secured debt, including first lien, including first lien, unitranche, including last out portions of such loans, and second lien debt, and unsecured debt, including mezzanine debt, as well as through select equity investments. The Company invests primarily in the United States middle-market companies. The Company invests in illiquid securities, including debt and equity investments, of middle-market companies. As of December 31, 2016, its portfolio included first lien/senior secured debt, first lien/last-out unitranche, second lien/senior secured debt, unsecured debt, preferred stock, common stock, and investment funds and vehicles.

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