Bain Capital Specialty Finance, Inc. (BCSF) vs Carlyle Secured Lending, Inc. (CGBD)

Bain Capital Specialty Finance, Inc. and Carlyle Secured Lending, Inc. are both Asset Management companies. Bain Capital Specialty Finance, Inc. and Carlyle Secured Lending, Inc. are of similar size ($767.2M and $721.3M). Bain Capital Specialty Finance, Inc. trades at the lower P/E: 11.2× against 22.1×. Carlyle Secured Lending, Inc. grew revenue faster over the last twelve months: 10.7% against −6.95%. Bain Capital Specialty Finance, Inc. has the higher net margin (24.2% vs 14.3%) and the higher return on invested capital (3.01% vs 2.75%). Both pay a dividend; Bain Capital Specialty Finance, Inc. yields more (10.7% vs 9.89%). Across the 22 metrics below, Bain Capital Specialty Finance, Inc. leads on 14 and Carlyle Secured Lending, Inc. on 8.

Valuation

Metric BCSF CGBD Asset Management median
P/E 11.19 22.10 14.62
P/S 2.72 3.01 2.97
P/B 0.67 0.72 0.94
Price to free cash flow 5.38 4.70 8.93
EV/EBITDA 18.11 9.15 10.32
EV/Sales 13.76 7.80 5.72
Earnings yield 8.94% 4.53% 4.53%
Free cash flow yield 18.58% 21.29% 4.65%

Profitability

Metric BCSF CGBD Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 75.36% 74.29% 33.03%
Net margin 24.22% 14.26% 13.53%
Free cash flow margin 50.60% 64.17% 12.44%
Return on equity 5.76% 3.25% 4.83%
Return on assets 2.37% 1.47% 1.57%
Return on invested capital 3.01% 2.75% 3.04%

Growth

Metric BCSF CGBD Asset Management median
Revenue growth (TTM) (6.95%) 10.71% 6.97%
EPS growth (last fiscal year) (17.84%) (36.08%) —
Revenue growth, 5-year CAGR 7.04% 7.01% 12.13%
Net income growth, 5-year CAGR 64.18% 72.30% 0.00%

Health

Metric BCSF CGBD Asset Management median
Debt to equity 1.39 1.20 0.42
Current ratio 7.20 0.79 1.28
Net debt to EBITDA 6.85 9.27 1.06

Dividend

Metric BCSF CGBD Asset Management median
Dividend yield 10.72% 9.89% 6.92%
Payout ratio 0.83 1.08 0.77

Size

Metric BCSF CGBD Asset Management median
Market cap 721.34m 767.17m 721.34m

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