AllianceBernstein Holding L.P. (AB) vs Hercules Capital, Inc. (HTGC)

AllianceBernstein Holding L.P. and Hercules Capital, Inc. are both Asset Management companies. AllianceBernstein Holding L.P. and Hercules Capital, Inc. are of similar size ($3.3B and $3.1B). Hercules Capital, Inc. trades at the lower P/E: 8.1× against 10.6×. Hercules Capital, Inc. has the higher net margin (67.7% vs 0.00%) and the higher return on invested capital (4.64% vs 0.00%). Both pay a dividend; Hercules Capital, Inc. yields more (9.25% vs 9.24%). Across the 14 metrics below, Hercules Capital, Inc. leads on 9 and AllianceBernstein Holding L.P. on 5.

Valuation

Metric AB HTGC Asset Management median
P/E 10.58 8.12 14.62
P/S n/m 5.56 2.97
P/B 2.68 1.38 0.94
Price to free cash flow 10.63 373.68 8.93
EV/EBITDA n/m 11.96 10.32
EV/Sales n/m 9.60 5.72
Earnings yield 9.45% 12.32% 4.53%
Free cash flow yield 9.41% 0.27% 4.65%

Profitability

Metric AB HTGC Asset Management median
Gross margin — 100.00% 100.00%
Operating margin — 78.48% 33.03%
Net margin 0.00% 67.68% 13.53%
Free cash flow margin 0.00% 1.49% 12.44%
Return on equity 19.37% 17.32% 4.83%
Return on assets 19.36% 8.54% 1.57%
Return on invested capital 0.00% 4.64% 3.04%

Growth

Metric AB HTGC Asset Management median
Revenue growth (TTM) — 12.34% 6.97%
EPS growth (last fiscal year) (19.95%) 14.91% —
Revenue growth, 5-year CAGR — 13.14% 12.13%
Net income growth, 5-year CAGR 1.42% 8.37% 0.00%

Health

Metric AB HTGC Asset Management median
Debt to equity 0.00 1.03 0.42
Current ratio — 1.37 1.28
Net debt to EBITDA — 5.21 1.06

Dividend

Metric AB HTGC Asset Management median
Dividend yield 9.24% 9.25% 6.92%
Payout ratio — 0.70 0.77

Size

Metric AB HTGC Asset Management median
Market cap 3.30b 3.14b 721.34m

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