Bain Capital Specialty Finance, Inc. (BCSF) vs Prospect Capital Corporation (PSEC)

Bain Capital Specialty Finance, Inc. and Prospect Capital Corporation are both Asset Management companies. Bain Capital Specialty Finance, Inc. and Prospect Capital Corporation are of similar size ($739.3M and $724.6M). Prospect Capital Corporation has negative trailing earnings, so its P/E is not meaningful; Bain Capital Specialty Finance, Inc. trades at 11.3×. Prospect Capital Corporation grew revenue faster over the last twelve months: −6.93% against −6.95%. Bain Capital Specialty Finance, Inc. has the higher net margin (24.2% vs −11.3%) and the lower return on invested capital (3.01% vs 3.42%). Both pay a dividend; Prospect Capital Corporation yields more (34.5% vs 11.3%). Across the 20 metrics below, Prospect Capital Corporation leads on 11 and Bain Capital Specialty Finance, Inc. on 9.

Valuation

Metric BCSF PSEC Asset Management median
P/E 11.28 n/m 13.38
P/S 2.75 1.15 2.99
P/B 0.67 0.25 0.91
Price to free cash flow 5.42 1.18 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 8.86% (10.79%) 4.67%
Free cash flow yield 18.43% 84.91% 4.85%

Profitability

Metric BCSF PSEC Asset Management median
Gross margin 100.00% 74.50% 100.00%
Operating margin 75.36% 71.06% 27.27%
Net margin 24.22% (11.32%) 11.89%
Free cash flow margin 50.60% 97.70% 5.96%
Return on equity 5.76% (2.44%) 4.57%
Return on assets 2.37% (1.13%) 1.40%
Return on invested capital 3.01% 3.42% 2.12%

Growth

Metric BCSF PSEC Asset Management median
Revenue growth (TTM) (6.95%) (6.93%) 7.26%
EPS growth (last fiscal year) (17.84%) 104.44% (5.64%)
Revenue growth, 5-year CAGR 7.04% 0.24% 11.84%
Net income growth, 5-year CAGR 64.18% (50.08%) 0.00%

Health

Metric BCSF PSEC Asset Management median
Debt to equity 1.39 0.34 0.40
Current ratio 7.20 0.87 1.23
Net debt to EBITDA 6.85 3.95 1.06

Dividend

Metric BCSF PSEC Asset Management median
Dividend yield 11.28% 34.53% 6.43%
Payout ratio 1.27 16.00 0.91

Size

Metric BCSF PSEC Asset Management median
Market cap 724.58m 739.34m 692.54m

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