PDCC vs ARCC vs GBDC vs PSEC vs CGBD

For growth investors, Golub Capital BDC, Inc.

(GBDC) is the stronger pick with 42. 5% revenue growth year-over-year, versus -159. 2% for Prospect Capital Corporation (PSEC). Golub Capital BDC, Inc. (GBDC) offers the better valuation at 9. 0x trailing P/E (9. 3x forward), making it the more compelling value choice. Analysts rate Ares Capital Corporation (ARCC) a "Buy" — based on 32 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Golub Capital BDC, Inc.

(GBDC) is the cheapest at 9. 0x versus Carlyle Secured Lending, Inc. at 10. 9x. On forward P/E, Prospect Capital Corporation is actually cheaper at 5. 0x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Carlyle Secured Lending, Inc. wins at 0. 12x versus Ares Capital Corporation's 0. 94x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Ares Capital Corporation (ARCC) delivered a total return of +44.

6%, compared to -36. 8% for Prospect Capital Corporation (PSEC). Over 10 years, the gap is even starker: ARCC returned +153. 0% versus PDCC's -26. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Pearl Diver Credit Company Inc.

(PDCC) is the lower-risk stock at 0. 27β versus Prospect Capital Corporation's 0. 80β — meaning PSEC is approximately 192% more volatile than PDCC relative to the S&P 500. On balance sheet safety, Pearl Diver Credit Company Inc. (PDCC) carries a lower debt/equity ratio of 5% versus 131% for Carlyle Secured Lending, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Golub Capital BDC, Inc.

(GBDC) is pulling ahead at 42. 5% versus -159. 2% for Prospect Capital Corporation (PSEC). On earnings-per-share growth, the picture is similar: Golub Capital BDC, Inc. grew EPS 4. 4% year-over-year, compared to -475. 0% for Prospect Capital Corporation. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Prospect Capital Corporation (PSEC) is the more profitable company, earning 169.

8% net margin versus -86. 8% for Pearl Diver Credit Company Inc. — meaning it keeps 169. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PSEC leads at 169. 8% versus -71. 8% for PDCC. At the gross margin level — before operating expenses — PSEC leads at 147. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Carlyle Secured Lending, Inc. (CGBD) is the more undervalued stock at a PEG of 0. 12x versus Ares Capital Corporation's 0. 94x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Prospect Capital Corporation (PSEC) trades at 5. 0x forward P/E versus 9. 7x for Ares Capital Corporation — 4. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GBDC: 12. 0% to $14. 25.

In this comparison, PSEC (32.

7% yield), CGBD (13. 7% yield), GBDC (10. 9% yield), ARCC (2. 1% yield) pay a dividend. PDCC does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Carlyle Secured Lending, Inc.

(CGBD) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 47), 13. 7% yield). Both have compounded well over 10 years (CGBD: +43. 3%, PDCC: -26. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: PDCC is a small-cap high-growth stock; ARCC is a mid-cap high-growth stock; GBDC is a small-cap high-growth stock; PSEC is a small-cap income-oriented stock; CGBD is a small-cap high-growth stock. ARCC, GBDC, PSEC, CGBD pay a dividend while PDCC does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.