Head-To-Head Comparison: Crescent Capital BDC (NASDAQ:CCAP) vs. Investcorp Credit Management BDC (NASDAQ:ICMB)

Investcorp Credit Management BDC (NASDAQ:ICMB) and Crescent Capital BDC (NASDAQ:CCAP) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Investcorp Credit Management BDC and Crescent Capital BDC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Investcorp Credit Management BDC	1	0	0	0	1.00
Crescent Capital BDC	1	3	2	0	2.17

Crescent Capital BDC has a consensus target price of $13.90, indicating a potential upside of 23.34%. Given Crescent Capital BDC’s stronger consensus rating and higher probable upside, analysts clearly believe Crescent Capital BDC is more favorable than Investcorp Credit Management BDC.

Dividends

Investcorp Credit Management BDC pays an annual dividend of $0.48 per share and has a dividend yield of 40.7%. Crescent Capital BDC pays an annual dividend of $1.68 per share and has a dividend yield of 14.9%. Investcorp Credit Management BDC pays out -35.0% of its earnings in the form of a dividend. Crescent Capital BDC pays out 409.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Investcorp Credit Management BDC has raised its dividend for 1 consecutive years and Crescent Capital BDC has raised its dividend for 1 consecutive years. Investcorp Credit Management BDC is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Investcorp Credit Management BDC and Crescent Capital BDC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Investcorp Credit Management BDC	-118.71%	2.26%	0.75%
Crescent Capital BDC	9.26%	9.34%	4.04%

Volatility & Risk

Investcorp Credit Management BDC has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, Crescent Capital BDC has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Institutional and Insider Ownership

7.8% of Investcorp Credit Management BDC shares are held by institutional investors. Comparatively, 49.5% of Crescent Capital BDC shares are held by institutional investors. 1.3% of Investcorp Credit Management BDC shares are held by company insiders. Comparatively, 1.2% of Crescent Capital BDC shares are held 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.

Earnings & Valuation

This table compares Investcorp Credit Management BDC and Crescent Capital BDC”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Investcorp Credit Management BDC	-$15.41 million	-1.11	-$8.85 million	($1.37)	-0.86
Crescent Capital BDC	$167.29 million	2.48	$34.51 million	$0.41	27.49

Crescent Capital BDC has higher revenue and earnings than Investcorp Credit Management BDC. Investcorp Credit Management BDC 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.

Summary

Crescent Capital BDC beats Investcorp Credit Management BDC on 12 of the 16 factors compared between the two stocks.

About Investcorp Credit Management BDC

Investcorp Credit Management BDC, Inc. is a business development company specializing in loan, mezzanine, middle market, growth capital, acquisitions, market/product expansion, organic growth, refinancings and recapitalization investments. It also selectively invests in mezzanine loans/structured equity and in the equity of portfolio companies through warrants and other instruments, in most cases taking such upside participation interests as part of a broader investment relationship. The fund typically invests in United States and Europe. Within United States, the fund seeks to invest in Midatlantic, Midwest, Northeast, Southeast, and West Coast regions. The fund primarily invests in cable and satellites; consumer services; healthcare equipment and services; industrials; information technology; telecommunication services; and utilities sectors. The fund seeks to invest between $5 million to $25 million in companies that have annual revenues of at least $50 million with EBITDA at least $15 million.

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.