Bain Capital Specialty Finance, Inc. (BCSF) vs PennantPark Floating Rate Capital Ltd. (PFLT)

Bain Capital Specialty Finance, Inc. and PennantPark Floating Rate Capital Ltd. are both Asset Management companies. Bain Capital Specialty Finance, Inc. and PennantPark Floating Rate Capital Ltd. are of similar size ($721.3M and $698.5M). Bain Capital Specialty Finance, Inc. trades at the lower P/E: 11.2× against 13.7×. PennantPark Floating Rate Capital Ltd. grew revenue faster over the last twelve months: 9.33% against −6.95%. Bain Capital Specialty Finance, Inc. has the higher net margin (24.2% vs 18.5%) and the lower return on invested capital (3.01% vs 3.51%). Both pay a dividend; PennantPark Floating Rate Capital Ltd. yields more (10.8% vs 10.7%). Across the 21 metrics below, Bain Capital Specialty Finance, Inc. leads on 11 and PennantPark Floating Rate Capital Ltd. on 10.

Valuation

Metric BCSF PFLT Asset Management median
P/E 11.19 13.71 14.62
P/S 2.72 2.56 2.97
P/B 0.67 0.68 0.94
Price to free cash flow 5.38 n/m 8.93
EV/EBITDA 18.11 5.62 10.32
EV/Sales 13.76 5.72 5.72
Earnings yield 8.94% 7.30% 4.53%
Free cash flow yield 18.58% (8.42%) 4.65%

Profitability

Metric BCSF PFLT Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 75.36% 76.57% 33.03%
Net margin 24.22% 18.53% 13.53%
Free cash flow margin 50.60% (21.54%) 12.44%
Return on equity 5.76% 4.77% 4.83%
Return on assets 2.37% 1.95% 1.57%
Return on invested capital 3.01% 3.51% 3.04%

Growth

Metric BCSF PFLT Asset Management median
Revenue growth (TTM) (6.95%) 9.33% 6.97%
EPS growth (last fiscal year) (17.84%) (48.57%) —
Revenue growth, 5-year CAGR 7.04% 22.32% 12.13%
Net income growth, 5-year CAGR 64.18% 29.23% 0.00%

Health

Metric BCSF PFLT Asset Management median
Debt to equity 1.39 0.94 0.42
Current ratio 7.20 0.19 1.28
Net debt to EBITDA 6.85 3.46 1.06

Dividend

Metric BCSF PFLT Asset Management median
Dividend yield 10.72% 10.75% 6.92%
Payout ratio 0.83 14.25 0.77

Size

Metric BCSF PFLT Asset Management median
Market cap 721.34m 698.50m 721.34m

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