Burford Capital Limited (BUR) vs Prospect Capital Corporation (PSEC)

Burford Capital Limited and Prospect Capital Corporation are both Asset Management companies. Burford Capital Limited is the larger, with a market value of $869.6M against $739.3M — 1.2× the size. Prospect Capital Corporation grew revenue faster over the last twelve months: −6.93% against −402.2%. Burford Capital Limited has the higher net margin (115.0% vs −11.3%) and the lower return on invested capital (−23.3% vs 3.42%). Both pay a dividend; Prospect Capital Corporation yields more (34.5% vs 1.58%). Across the 18 metrics below, Prospect Capital Corporation leads on 13 and Burford Capital Limited on 5.

Valuation

Metric BUR PSEC Asset Management median
P/E n/m n/m 13.38
P/S n/m 1.15 2.99
P/B 0.58 0.25 0.91
Price to free cash flow n/m 1.18 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (189.65%) (10.79%) 4.67%
Free cash flow yield (33.55%) 84.91% 4.85%

Profitability

Metric BUR PSEC Asset Management median
Gross margin 100.00% 74.50% 100.00%
Operating margin 99.48% 71.06% 27.27%
Net margin 115.02% (11.32%) 11.89%
Free cash flow margin 20.41% 97.70% 5.96%
Return on equity (70.01%) (2.44%) 4.57%
Return on assets (30.20%) (1.13%) 1.40%
Return on invested capital (23.34%) 3.42% 2.12%

Growth

Metric BUR PSEC Asset Management median
Revenue growth (TTM) (402.21%) (6.93%) 7.26%
EPS growth (last fiscal year) (57.58%) 104.44% (5.64%)
Revenue growth, 5-year CAGR 2.85% 0.24% 11.84%
Net income growth, 5-year CAGR (17.64%) (50.08%) 0.00%

Health

Metric BUR PSEC Asset Management median
Debt to equity 1.53 0.34 0.40
Current ratio 0.00 0.87 1.23
Net debt to EBITDA 6.34 3.95 1.06

Dividend

Metric BUR PSEC Asset Management median
Dividend yield 1.58% 34.53% 6.43%
Payout ratio — 16.00 0.91

Size

Metric BUR PSEC Asset Management median
Market cap 869.60m 739.34m 692.54m

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