Burford Capital Limited (BUR) vs PennantPark Floating Rate Capital Ltd. (PFLT)

Burford Capital Limited and PennantPark Floating Rate Capital Ltd. are both Asset Management companies. Burford Capital Limited and PennantPark Floating Rate Capital Ltd. are of similar size ($722.5M and $660.1M). Burford Capital Limited has negative trailing earnings, so its P/E is not meaningful; PennantPark Floating Rate Capital Ltd. trades at 12.8×. PennantPark Floating Rate Capital Ltd. grew revenue faster over the last twelve months: 9.33% against −331.0%. Burford Capital Limited has the higher net margin (112.0% vs 18.5%) and the lower return on invested capital (−29.9% vs 3.51%). Both pay a dividend; PennantPark Floating Rate Capital Ltd. yields more (15.9% vs 4.14%). Across the 17 metrics below, PennantPark Floating Rate Capital Ltd. leads on 12 and Burford Capital Limited on 5.

Valuation

Metric BUR PFLT Asset Management median
P/E n/m 12.76 13.99
P/S n/m 2.38 2.76
P/B 0.45 0.63 0.85
Price to free cash flow n/m n/m 8.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (255.30%) 7.83% 4.72%
Free cash flow yield (27.93%) (9.04%) 4.44%

Profitability

Metric BUR PFLT Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 99.23% 76.57% 33.42%
Net margin 111.95% 18.53% 13.37%
Free cash flow margin 12.27% (21.54%) 12.36%
Return on equity (71.82%) 4.77% 4.79%
Return on assets (31.82%) 1.95% 1.55%
Return on invested capital (29.90%) 3.51% 2.97%

Growth

Metric BUR PFLT Asset Management median
Revenue growth (TTM) (330.95%) 9.33% 7.42%
EPS growth (last fiscal year) (57.58%) (48.57%) (6.67%)
Revenue growth, 5-year CAGR 2.85% 22.32% 12.51%
Net income growth, 5-year CAGR (17.64%) 29.23% 0.00%

Health

Metric BUR PFLT Asset Management median
Debt to equity 1.64 0.94 0.44
Current ratio 9.56 0.19 1.30
Net debt to EBITDA 6.34 3.46 1.02

Dividend

Metric BUR PFLT Asset Management median
Dividend yield 4.14% 15.94% 6.60%
Payout ratio — 2.03 0.94

Size

Metric BUR PFLT Asset Management median
Market cap 722.47m 660.13m 694.86m

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