Burford Capital Limited (BUR) vs New Mountain Finance Corporation (NMFC)

Burford Capital Limited and New Mountain Finance Corporation are both Asset Management companies. Burford Capital Limited is the larger, with a market value of $722.5M against $651.3M — 1.1× the size. New Mountain Finance Corporation grew revenue faster over the last twelve months: −60.6% against −331.0%. Burford Capital Limited has the higher net margin (112.0% vs −41.1%) and the lower return on invested capital (−29.9% vs −1.29%). Both pay a dividend; New Mountain Finance Corporation yields more (16.9% vs 4.14%). Across the 17 metrics below, New Mountain Finance Corporation leads on 11 and Burford Capital Limited on 6.

Valuation

Metric BUR NMFC Asset Management median
P/E n/m n/m 13.99
P/S n/m 5.40 2.76
P/B 0.45 0.61 0.85
Price to free cash flow n/m 0.96 8.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (255.30%) (6.98%) 4.72%
Free cash flow yield (27.93%) 103.81% 4.44%

Profitability

Metric BUR NMFC Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 99.23% 0.00% 33.42%
Net margin 111.95% (41.05%) 13.37%
Free cash flow margin 12.27% 560.64% 12.36%
Return on equity (71.82%) (4.12%) 4.79%
Return on assets (31.82%) (1.74%) 1.55%
Return on invested capital (29.90%) (1.29%) 2.97%

Growth

Metric BUR NMFC Asset Management median
Revenue growth (TTM) (330.95%) (60.64%) 7.42%
EPS growth (last fiscal year) (57.58%) (84.47%) (6.67%)
Revenue growth, 5-year CAGR 2.85% (1.03%) 12.51%
Net income growth, 5-year CAGR (17.64%) (22.37%) 0.00%

Health

Metric BUR NMFC Asset Management median
Debt to equity 1.64 1.30 0.44
Current ratio 9.56 13.33 1.30
Net debt to EBITDA 6.34 0.00 1.02

Dividend

Metric BUR NMFC Asset Management median
Dividend yield 4.14% 16.94% 6.60%
Payout ratio — — 0.94

Size

Metric BUR NMFC Asset Management median
Market cap 722.47m 651.25m 694.86m

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