Head-To-Head Contrast: Goldman Sachs BDC (NYSE:GSBD) & BlackRock MuniYield Fund (NYSE:MYD)

BlackRock MuniYield Fund (NYSE:MYD) and Goldman Sachs BDC (NYSE:GSBD) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and price targets for BlackRock MuniYield Fund and Goldman Sachs BDC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlackRock MuniYield Fund	0	0	0	0	0.00
Goldman Sachs BDC	0	2	0	0	2.00

Goldman Sachs BDC has a consensus target price of $13.00, indicating a potential upside of 1.17%. Given Goldman Sachs BDC’s stronger consensus rating and higher probable upside, analysts plainly believe Goldman Sachs BDC is more favorable than BlackRock MuniYield Fund.

Volatility & Risk

BlackRock MuniYield Fund has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Goldman Sachs BDC has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Dividends

BlackRock MuniYield Fund pays an annual dividend of $0.63 per share and has a dividend yield of 6.1%. Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 14.0%. Goldman Sachs BDC pays out 257.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BlackRock MuniYield Fund	N/A	N/A	N/A
Goldman Sachs BDC	17.01%	15.72%	7.08%

Institutional and Insider Ownership

33.8% of BlackRock MuniYield Fund shares are held by institutional investors. Comparatively, 28.7% of Goldman Sachs BDC shares are held by institutional investors. 1.0% of BlackRock MuniYield Fund shares are held by company insiders. Comparatively, 0.1% of Goldman Sachs BDC shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares BlackRock MuniYield Fund 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
BlackRock MuniYield Fund	$24.27 million	19.99	N/A	N/A	N/A
Goldman Sachs BDC	$90.89 million	16.58	$195.87 million	$0.70	18.36

Goldman Sachs BDC has higher revenue and earnings than BlackRock MuniYield Fund.

Summary

Goldman Sachs BDC beats BlackRock MuniYield Fund on 8 of the 12 factors compared between the two stocks.

About BlackRock MuniYield Fund

BlackRock MuniYield Fund, Inc. is a closed ended fixed income mutual fund launched by BlackRock, Inc. The fund is managed by BlackRock Advisors, LLC. It invests in fixed income markets. The fund primarily in long-term investment-grade municipal bonds with a maturity of more than ten years. It is exempt from federal income taxes. BlackRock MuniYield Fund, Inc. was formed on November 29, 1991 and is domiciled in United States.

About Goldman Sachs BDC

Goldman Sachs BDC, Inc. is a business development company specializing in middle market and mezzanine investment in private companies. It seeks to make capital appreciation through direct originations of secured debt, senior secured debt, junior secured debt, including first lien, first lien/last-out unitranche and second lien debt, unsecured debt, including mezzanine debt and, to a lesser extent, investments in equities. The fund primarily invests in United States. It seeks to invest between $10 million and $75 million in companies with EBITDA between $5 million and $75 million annually.