Critical Contrast: Invent Ventures (OTCMKTS:IDEA) vs. Palmer Square Capital BDC (NYSE:PSBD)

Palmer Square Capital BDC (NYSE:PSBD) and Invent Ventures (OTCMKTS:IDEA) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings for Palmer Square Capital BDC and Invent Ventures, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palmer Square Capital BDC	0	3	1	0	2.25
Invent Ventures	0	0	0	0	0.00

Palmer Square Capital BDC presently has a consensus target price of $13.63, indicating a potential upside of 11.27%. Given Palmer Square Capital BDC’s stronger consensus rating and higher possible upside, analysts clearly believe Palmer Square Capital BDC is more favorable than Invent Ventures.

Insider & Institutional Ownership

6.5% of Palmer Square Capital BDC shares are owned by institutional investors. 1.0% of Palmer Square Capital BDC shares are owned by company insiders. Comparatively, 19.4% of Invent Ventures shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Palmer Square Capital BDC has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Invent Ventures has a beta of -52.44, meaning that its share price is 5,344% less volatile than the S&P 500.

Profitability

This table compares Palmer Square Capital BDC and Invent Ventures’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palmer Square Capital BDC	13.51%	10.91%	4.15%
Invent Ventures	91.12%	N/A	N/A

Earnings and Valuation

This table compares Palmer Square Capital BDC and Invent Ventures”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Palmer Square Capital BDC	$143.51 million	2.74	$47.67 million	$0.56	21.87
Invent Ventures	$790,000.00	3.80	$710,000.00	N/A	N/A

Palmer Square Capital BDC has higher revenue and earnings than Invent Ventures.

Summary

Palmer Square Capital BDC beats Invent Ventures on 9 of the 12 factors compared between the two stocks.

About Palmer Square Capital BDC

Palmer Square Capital BDC Inc. is an externally managed, non-diversified closed-end management investment company which primarily lends to and invests in corporate debt securities, including small to large private U.S. companies and has elected to be regulated as a business development company. Palmer Square Capital BDC Inc. is based in MISSION WOODS, Kan.

About Invent Ventures

Invent Ventures, Inc., formerly known as Los Angeles Syndicate of Technology, Inc., is venture capital firm specializing in incubation, seed, start ups, growth capital, and early stage investments. The firm prefers to invest in technology companies including web-based software, digital media, mobile applications, social media, consumer internet, online advertising and healthcare technology . It prefers to invest in the Los Angeles area of United States. The firm seeks to invest up to $0.25 million. Invent Ventures, Inc. was founded on August 18, 2005 and is based in Santa Monica, California.