PDCC vs OXLC vs ECC vs ARCC vs GBDC

For growth investors, Oxford Lane Capital Corp.

(OXLC) is the stronger pick with 309. 1% revenue growth year-over-year, versus 0. 1% for Eagle Point Credit Company Inc. (ECC). 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 Oxford Lane Capital Corp. (OXLC) a "Buy" — based on 4 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 Ares Capital Corporation at 10. 0x. On forward P/E, Oxford Lane Capital Corp. is actually cheaper at 2. 8x — 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: Golub Capital BDC, Inc. wins at 0. 30x 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 -26. 0% for Pearl Diver Credit Company Inc. (PDCC). 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 Eagle Point Credit Company Inc. 's 0. 77β — meaning ECC is approximately 179% 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 123% for Golub Capital BDC, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Oxford Lane Capital Corp.

(OXLC) is pulling ahead at 309. 1% versus 0. 1% for Eagle Point Credit Company Inc. (ECC). On earnings-per-share growth, the picture is similar: Golub Capital BDC, Inc. grew EPS 4. 4% year-over-year, compared to -1230. 2% for Oxford Lane Capital Corp.. 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.

Golub Capital BDC, Inc.

(GBDC) is the more profitable company, earning 43. 2% net margin versus -149. 4% for Oxford Lane Capital Corp. — meaning it keeps 43. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: GBDC leads at 78. 9% versus -135. 4% for OXLC. At the gross margin level — before operating expenses — GBDC leads at 81. 5%, 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, Golub Capital BDC, Inc. (GBDC) is the more undervalued stock at a PEG of 0. 30x 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, Oxford Lane Capital Corp. (OXLC) trades at 2. 8x forward P/E versus 9. 7x for Ares Capital Corporation — 7. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ECC: 24. 3% to $4. 75.

In this comparison, OXLC (49.

8% yield), ECC (37. 9% 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, Golub Capital BDC, Inc.

(GBDC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 60), 10. 9% yield). Both have compounded well over 10 years (GBDC: +56. 9%, 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; OXLC is a small-cap high-growth stock; ECC is a small-cap income-oriented stock; ARCC is a mid-cap high-growth stock; GBDC is a small-cap high-growth stock. OXLC, ECC, ARCC, GBDC 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.