Analyzing Deutsche Boerse (OTCMKTS:DBOEY) & Palmer Square Capital BDC (NYSE:PSBD)

Deutsche Boerse (OTCMKTS:DBOEY) and Palmer Square Capital BDC (NYSE:PSBD) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Earnings and Valuation

This table compares Deutsche Boerse and Palmer Square Capital BDC”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Boerse	$6.82 billion	8.63	$2.26 billion	$1.36	24.00
Palmer Square Capital BDC	$124.39 million	2.56	-$3.17 million	($0.99)	-10.48

Deutsche Boerse has higher revenue and earnings than Palmer Square Capital BDC. Palmer Square Capital BDC is trading at a lower price-to-earnings ratio than Deutsche Boerse, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Deutsche Boerse and Palmer Square Capital BDC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deutsche Boerse	33.04%	20.33%	0.64%
Palmer Square Capital BDC	-26.73%	11.22%	4.15%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Deutsche Boerse and Palmer Square Capital BDC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Boerse	1	2	3	0	2.33
Palmer Square Capital BDC	0	5	0	0	2.00

Palmer Square Capital BDC has a consensus target price of $10.50, indicating a potential upside of 1.16%. Given Palmer Square Capital BDC’s higher possible upside, analysts plainly believe Palmer Square Capital BDC is more favorable than Deutsche Boerse.

Insider and Institutional Ownership

6.5% of Palmer Square Capital BDC shares are owned by institutional investors. 1.1% of Palmer Square Capital BDC shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Deutsche Boerse has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, Palmer Square Capital BDC has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Dividends

Deutsche Boerse pays an annual dividend of $0.29 per share and has a dividend yield of 0.9%. Palmer Square Capital BDC pays an annual dividend of $1.44 per share and has a dividend yield of 13.9%. Deutsche Boerse pays out 21.3% of its earnings in the form of a dividend. Palmer Square Capital BDC pays out -145.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Palmer Square Capital BDC is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Deutsche Boerse beats Palmer Square Capital BDC on 9 of the 16 factors compared between the two stocks.

About Deutsche Boerse

Deutsche Börse AG operates as an exchange organization in Europe, America, and the Asia-Pacific. The company operates through four segments: Data & Analytics; Trading & Clearing; Fund Services; and Securities Services. It engages in the trading of derivatives, electricity and gas products, emission rights, foreign exchange, and commodity products; operating EEX and 360T over the counter trading platform for financial instruments, such as foreign exchange, money market, and interest rate products; and operating as a central counterparty. The company also operates in the cash market through Xetra, Börse Frankfurt, and Tradegate trading venues; Qontigo, an integrated suite of front-to-back investment management solution; and a central counterparty for equities and bonds, as well as provides pre-ipo and listing services. In addition, it offers custody and settlement services for securities; investment fund services; connectivity services; and global securities funding and financing, and collateral and liquidity management, as well as secured money, market transaction, and repos and securities lending transaction services. Further, the company provides order routing, settlement, asset management, and custody; investment distribution and placement; infrastructure and post-trading; index, analytics, and risk; securities transactions settlement; securities custody and administration; and market data and analytics services. Additionally, it operates third clearing house Nodal Clear; and specialized software as a service platform for trading participants and digital business platform, as well as offers information technology solutions, including financial market, commodities market, and network connectivity solutions under the Deutsche Börse and 7 Market Technology brands. The company was founded in 1585 and is headquartered in Eschborn, Germany.

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.