Crescent Capital BDC (NASDAQ:CCAP – Get Free Report) and New Mountain Finance (NASDAQ:NMFC – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.
Volatility & Risk
Crescent Capital BDC has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, New Mountain Finance has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.
Profitability
This table compares Crescent Capital BDC and New Mountain Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Crescent Capital BDC | 20.84% | 9.76% | 4.30% |
| New Mountain Finance | 20.84% | 10.42% | 4.34% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Crescent Capital BDC | $197.36 million | 2.69 | $73.65 million | $0.98 | 14.64 |
| New Mountain Finance | $371.67 million | 2.57 | $113.44 million | $0.65 | 14.23 |
New Mountain Finance has higher revenue and earnings than Crescent Capital BDC. New Mountain Finance is trading at a lower price-to-earnings ratio than Crescent Capital BDC, indicating that it is currently the more affordable of the two stocks.
Dividends
Crescent Capital BDC pays an annual dividend of $1.68 per share and has a dividend yield of 11.7%. New Mountain Finance pays an annual dividend of $1.28 per share and has a dividend yield of 13.8%. Crescent Capital BDC pays out 171.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. New Mountain Finance pays out 196.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Crescent Capital BDC has raised its dividend for 1 consecutive years.
Institutional & Insider Ownership
49.5% of Crescent Capital BDC shares are owned by institutional investors. Comparatively, 32.1% of New Mountain Finance shares are owned by institutional investors. 1.1% of Crescent Capital BDC shares are owned by insiders. Comparatively, 11.7% of New Mountain Finance shares are owned 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.
Analyst Recommendations
This is a breakdown of current ratings for Crescent Capital BDC and New Mountain Finance, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Crescent Capital BDC | 0 | 2 | 3 | 1 | 2.83 |
| New Mountain Finance | 1 | 6 | 0 | 0 | 1.86 |
Crescent Capital BDC currently has a consensus target price of $16.38, indicating a potential upside of 14.11%. New Mountain Finance has a consensus target price of $10.17, indicating a potential upside of 9.91%. Given Crescent Capital BDC’s stronger consensus rating and higher possible upside, equities analysts plainly believe Crescent Capital BDC is more favorable than New Mountain Finance.
Summary
Crescent Capital BDC beats New Mountain Finance on 10 of the 17 factors compared between the two stocks.
About Crescent Capital BDC
Crescent Capital BDC, Inc. is as a business development company private equity / buyouts and loan fund. It specializes in directly investing. It specializes in middle market. The fund seeks to invest in United States.
About New Mountain Finance
New Mountain Finance Corporation (Nasdaq: NMFC), a business development company is a private equity / buyouts and loan fund specializes in directly investing and lending to middle market companies in defensive growth industries. The fund prefers investing in buyout and middle market companies. It also makes investments in debt securities at all levels of the capital structure including first and second lien debt, unsecured notes, and mezzanine securities. In some cases, its investments may also include equity interests. It targets energy, engineering and consulting services, specialty chemicals and materials, trading companies and distributors, commercial printing, diversified support services, education services, environmental and facilities services, office services and supplies, media, distributors, health care services, health care facilities, application software, business services, systems software, federal services, distribution and logistics, interactive home entertainment, telecommunication services, hydroelectric power generation, electric power generation by fossil fuels, electric power generation by nuclear fuels, health care technology, and security and alarm services. The fund seeks to invest in United States of America. It seeks to invest between $10 million and $125 million per transaction. The firm invests through both primary originations and open-market secondary purchases. It invests in companies with EBITDA between $10 million and $200 million. The fund seeks a majority stake in its portfolio companies.
Receive News & Ratings for Crescent Capital BDC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Crescent Capital BDC and related companies with MarketBeat.com's FREE daily email newsletter.
