RWAY
Runway Growth Finance Corp.
Financial - Credit Services
Market Cap$247M
5Y Perf.-47.3%
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Stock Comparison
RWAY vs GBDC
Revenue, margins, valuation, and 5-year total return — side by side.
GBDC
Golub Capital BDC, Inc.
Asset Management
Market Cap$3.43B
5Y Perf.-17.2%
RWAY vs GBDC — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | RWAY | GBDC |
|---|---|---|
| Industry | Financial - Credit Services | Asset Management |
| Market Cap | $247M | $3.43B |
| Revenue (TTM) | $140M | $871M |
| Net Income (TTM) | $32M | $205M |
| Gross Margin | 78.5% | 81.5% |
| Operating Margin | 54.7% | 78.9% |
| Forward P/E | 5.0x | 9.2x |
| Total Debt | $450M | $4.90B |
| Cash & Equiv. | $18M | $24M |
RWAY vs GBDC — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
RWAY
GBDC
| Stock | Oct 21 | May 26 | Return |
|---|---|---|---|
| Runway Growth Finan… (RWAY) | 100 | 52.7 | -47.3% |
| Golub Capital BDC, … (GBDC) | 100 | 82.8 | -17.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: RWAY vs GBDC
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: GBDC leads in 5 of 7 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. Runway Growth Finance Corp. is the stronger pick specifically for valuation and capital efficiency and dividend income and shareholder returns. As sector peers, any of these can serve as alternatives in the same allocation.
RWAY
Runway Growth Finance Corp.
The Banking Pick
RWAY is the clearest fit if your priority is income & stability and bank quality.
- Dividend streak 0 yrs, beta 0.72, yield 20.5%
- NIM 9.9% vs GBDC's 6.2%
- Lower P/E (5.0x vs 9.2x)
Best for: income & stability and bank quality
GBDC
Golub Capital BDC, Inc.
The Banking Pick
GBDC carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 42.5%, EPS growth 4.4%
- 61.0% 10Y total return vs RWAY's 6.0%
- Lower volatility, beta 0.64, current ratio 5.35x
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | GBDC | 42.5% NII/revenue growth vs RWAY's 12.8% |
| Value | RWAY | Lower P/E (5.0x vs 9.2x) |
| Quality / Margins | GBDC | Efficiency ratio 0.0% vs RWAY's 0.2% (lower = leaner) |
| Stability / Safety | GBDC | Beta 0.64 vs RWAY's 0.72 |
| Dividends | RWAY | 20.5% yield, vs GBDC's 10.5% |
| Momentum (1Y) | GBDC | +3.3% vs RWAY's -8.7% |
| Efficiency (ROA) | GBDC | Efficiency ratio 0.0% vs RWAY's 0.2% |
RWAY vs GBDC — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLRWAYLAGGINGGBDC
GBDCGolub Capital BDC, In…
3leads
RWAYRunway Growth Finance…
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6 Total Categories
CATEGORYLEADERvs GBDCMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
GBDC3/5
Valuation MetricsMultiples, price ratios, and targets
RWAY5/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
RWAY7/9
Total Returns1Y, 3Y, 5Y total returns with dividends
GBDC6/6
Risk & VolatilityBeta, volatility, and downside exposure
GBDC2/2
Analyst OutlookRatings, price targets, and dividends
RWAY1/1
Income & Cash Flow (Last 12 Months)
GBDC leads this category, winning 3 of 5 comparable metrics.
Income & Cash Flow (Last 12 Months)
GBDC is the larger business by revenue, generating $871M annually — 6.2x RWAY's $140M. GBDC is the more profitable business, keeping 43.2% of every revenue dollar as net income compared to RWAY's 24.3%.
| Metric | RWAYRunway Growth Fin… | GBDCGolub Capital BDC… |
|---|---|---|
| RevenueTrailing 12 months | $140M | $871M |
| EBITDAEarnings before interest/tax | $75M | $431M |
| Net IncomeAfter-tax profit | $32M | $205M |
| Free Cash FlowCash after capex | $54M | $313M |
| Gross MarginGross profit ÷ Revenue | +78.5% | +81.5% |
| Operating MarginEBIT ÷ Revenue | +54.7% | +78.9% |
| Net MarginNet income ÷ Revenue | +24.3% | +43.2% |
| FCF MarginFCF ÷ Revenue | +132.9% | -13.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | -100.0% | -160.0% |
GBDC leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
RWAY leads this category, winning 5 of 5 comparable metrics.
Valuation Metrics
At 7.3x trailing earnings, RWAY trades at a 21% valuation discount to GBDC's 9.3x P/E. On an enterprise value basis, RWAY's 8.8x EV/EBITDA is more attractive than GBDC's 12.1x.
| Metric | RWAYRunway Growth Fin… | GBDCGolub Capital BDC… |
|---|---|---|
| Market CapShares × price | $247M | $3.4B |
| Enterprise ValueMkt cap + debt − cash | $679M | $8.3B |
| Trailing P/EPrice ÷ TTM EPS | 7.34x | 9.26x |
| Forward P/EPrice ÷ next-FY EPS est. | 4.95x | 9.15x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.30x |
| EV / EBITDAEnterprise value multiple | 8.84x | 12.08x |
| Price / SalesMarket cap ÷ Revenue | 1.76x | 3.93x |
| Price / BookPrice ÷ Book value/share | 0.52x | 0.88x |
| Price / FCFMarket cap ÷ FCF | 1.32x | — |
RWAY leads this category, winning 5 of 5 comparable metrics.
Profitability & Efficiency
RWAY leads this category, winning 7 of 9 comparable metrics.
Profitability & Efficiency
RWAY delivers a 6.7% return on equity — every $100 of shareholder capital generates $7 in annual profit, vs $5 for GBDC. RWAY carries lower financial leverage with a 0.93x debt-to-equity ratio, signaling a more conservative balance sheet compared to GBDC's 1.23x. On the Piotroski fundamental quality scale (0–9), RWAY scores 7/9 vs GBDC's 4/9, reflecting strong financial health.
| Metric | RWAYRunway Growth Fin… | GBDCGolub Capital BDC… |
|---|---|---|
| ROE (TTM)Return on equity | +6.7% | +5.2% |
| ROA (TTM)Return on assets | +3.3% | +2.3% |
| ROICReturn on invested capital | +5.7% | +5.9% |
| ROCEReturn on capital employed | +7.5% | +7.8% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 4 |
| Debt / EquityFinancial leverage | 0.93x | 1.23x |
| Net DebtTotal debt minus cash | $432M | $4.9B |
| Cash & Equiv.Liquid assets | $18M | $24M |
| Total DebtShort + long-term debt | $450M | $4.9B |
| Interest CoverageEBIT ÷ Interest expense | 1.69x | 1.62x |
RWAY leads this category, winning 7 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
GBDC leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in GBDC five years ago would be worth $13,318 today (with dividends reinvested), compared to $10,597 for RWAY. Over the past 12 months, GBDC leads with a +3.3% total return vs RWAY's -8.7%. The 3-year compound annual growth rate (CAGR) favors GBDC at 10.6% vs RWAY's 1.2% — a key indicator of consistent wealth creation.
| Metric | RWAYRunway Growth Fin… | GBDCGolub Capital BDC… |
|---|---|---|
| YTD ReturnYear-to-date | -20.8% | -0.7% |
| 1-Year ReturnPast 12 months | -8.7% | +3.3% |
| 3-Year ReturnCumulative with dividends | +3.5% | +35.3% |
| 5-Year ReturnCumulative with dividends | +6.0% | +33.2% |
| 10-Year ReturnCumulative with dividends | +6.0% | +61.0% |
| CAGR (3Y)Annualised 3-year return | +1.2% | +10.6% |
GBDC leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
GBDC leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
GBDC is the less volatile stock with a 0.64 beta — it tends to amplify market swings less than RWAY's 0.72 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. GBDC currently trades 84.1% from its 52-week high vs RWAY's 59.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | RWAYRunway Growth Fin… | GBDCGolub Capital BDC… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.72x | 0.64x |
| 52-Week HighHighest price in past year | $11.41 | $15.63 |
| 52-Week LowLowest price in past year | $6.36 | $11.77 |
| % of 52W HighCurrent price vs 52-week peak | +59.9% | +84.1% |
| RSI (14)Momentum oscillator 0–100 | 50.8 | 52.8 |
| Avg Volume (50D)Average daily shares traded | 599K | 2.4M |
GBDC leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
RWAY leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates RWAY as "Hold" and GBDC as "Buy". Consensus price targets imply 46.4% upside for RWAY (target: $10) vs 9.0% for GBDC (target: $14). For income investors, RWAY offers the higher dividend yield at 20.53% vs GBDC's 10.53%.
| Metric | RWAYRunway Growth Fin… | GBDCGolub Capital BDC… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $10.00 | $14.33 |
| # AnalystsCovering analysts | 8 | 11 |
| Dividend YieldAnnual dividend ÷ price | +20.5% | +10.5% |
| Dividend StreakConsecutive years of raises | 0 | 0 |
| Dividend / ShareAnnual DPS | $1.40 | $1.38 |
| Buyback YieldShare repurchases ÷ mkt cap | +5.1% | +2.3% |
RWAY leads this category, winning 1 of 1 comparable metric.
Key Takeaway
GBDC leads in 3 of 6 categories (Income & Cash Flow, Total Returns). RWAY leads in 3 (Valuation Metrics, Profitability & Efficiency).
Best OverallRunway Growth Finance Corp. (RWAY)Leads 3 of 6 categories
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RWAY vs GBDC: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is RWAY or GBDC a better buy right now?
For growth investors, Golub Capital BDC, Inc.
(GBDC) is the stronger pick with 42. 5% revenue growth year-over-year, versus 12. 8% for Runway Growth Finance Corp. (RWAY). Runway Growth Finance Corp. (RWAY) offers the better valuation at 7. 3x trailing P/E (5. 0x forward), making it the more compelling value choice. Analysts rate Golub Capital BDC, Inc. (GBDC) a "Buy" — based on 11 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.
02Which has the better valuation — RWAY or GBDC?
On trailing P/E, Runway Growth Finance Corp.
(RWAY) is the cheapest at 7. 3x versus Golub Capital BDC, Inc. at 9. 3x. On forward P/E, Runway Growth Finance Corp. is actually cheaper at 5. 0x.
03Which is the better long-term investment — RWAY or GBDC?
Over the past 5 years, Golub Capital BDC, Inc.
(GBDC) delivered a total return of +33. 2%, compared to +6. 0% for Runway Growth Finance Corp. (RWAY). Over 10 years, the gap is even starker: GBDC returned +61. 0% versus RWAY's +6. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — RWAY or GBDC?
By beta (market sensitivity over 5 years), Golub Capital BDC, Inc.
(GBDC) is the lower-risk stock at 0. 64β versus Runway Growth Finance Corp. 's 0. 72β — meaning RWAY is approximately 12% more volatile than GBDC relative to the S&P 500. On balance sheet safety, Runway Growth Finance Corp. (RWAY) carries a lower debt/equity ratio of 93% versus 123% for Golub Capital BDC, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — RWAY or GBDC?
By revenue growth (latest reported year), Golub Capital BDC, Inc.
(GBDC) is pulling ahead at 42. 5% versus 12. 8% for Runway Growth Finance Corp. (RWAY). On earnings-per-share growth, the picture is similar: Golub Capital BDC, Inc. grew EPS 4. 4% year-over-year, compared to -50. 8% for Runway Growth Finance 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.
06Which has better profit margins — RWAY or GBDC?
Golub Capital BDC, Inc.
(GBDC) is the more profitable company, earning 43. 2% net margin versus 24. 3% for Runway Growth Finance 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 54. 7% for RWAY. 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.
07Is RWAY or GBDC more undervalued right now?
On forward earnings alone, Runway Growth Finance Corp.
(RWAY) trades at 5. 0x forward P/E versus 9. 2x for Golub Capital BDC, Inc. — 4. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for RWAY: 46. 4% to $10. 00.
08Which pays a better dividend — RWAY or GBDC?
All stocks in this comparison pay dividends.
Runway Growth Finance Corp. (RWAY) offers the highest yield at 20. 5%, versus 10. 5% for Golub Capital BDC, Inc. (GBDC).
09Is RWAY or GBDC better for a retirement portfolio?
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. 64), 10. 5% yield). Both have compounded well over 10 years (GBDC: +61. 0%, RWAY: +6. 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.
10What are the main differences between RWAY and GBDC?
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: RWAY is a small-cap deep-value stock; GBDC is a small-cap high-growth stock. 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.
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Revenue Growth>
%
(RWAY: 12.8% · GBDC: 42.5%)Net Margin>
%
(RWAY: 24.3% · GBDC: 43.2%)P/E Ratio<
x
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