Crescent Capital BDC, Inc. (CCAP) vs Saratoga Investment Corp (SAR)

Crescent Capital BDC, Inc. and Saratoga Investment Corp are both Asset Management companies. Crescent Capital BDC, Inc. is the larger, with a market value of $353.0M against $278.7M — 1.3× the size. Crescent Capital BDC, Inc. has negative trailing earnings, so its P/E is not meaningful; Saratoga Investment Corp trades at 17.1×. Saratoga Investment Corp grew revenue faster over the last twelve months: −12.9% against −14.6%. Saratoga Investment Corp has the higher net margin (12.7% vs −2.03%) and the higher return on invested capital (5.52% vs 2.58%). Both pay a dividend; Saratoga Investment Corp yields more (12.3% vs 10.9%). Across the 21 metrics below, Saratoga Investment Corp leads on 16 and Crescent Capital BDC, Inc. on 5.

Valuation

Metric CCAP SAR Asset Management median
P/E n/m 17.11 14.62
P/S 2.26 2.24 2.97
P/B 0.54 0.73 0.94
Price to free cash flow 8.94 n/m 8.93
EV/EBITDA 20.25 3.03 10.32
EV/Sales 7.93 2.31 5.72
Earnings yield (0.94%) 5.84% 4.53%
Free cash flow yield 11.19% (52.60%) 4.65%

Profitability

Metric CCAP SAR Asset Management median
Gross margin 64.03% 100.00% 100.00%
Operating margin 40.82% 68.26% 33.03%
Net margin (2.03%) 12.70% 13.53%
Free cash flow margin 25.23% (117.81%) 12.44%
Return on equity (0.46%) 4.07% 4.83%
Return on assets (0.19%) 1.31% 1.57%
Return on invested capital 2.58% 5.52% 3.04%

Growth

Metric CCAP SAR Asset Management median
Revenue growth (TTM) (14.62%) (12.86%) 6.97%
EPS growth (last fiscal year) (53.27%) 14.36% —
Revenue growth, 5-year CAGR 16.75% 8.36% 12.13%
Net income growth, 5-year CAGR (8.79%) (4.36%) 0.00%

Health

Metric CCAP SAR Asset Management median
Debt to equity 1.41 0.19 0.42
Current ratio 1.30 0.09 1.28
Net debt to EBITDA 12.92 0.50 1.06

Dividend

Metric CCAP SAR Asset Management median
Dividend yield 10.87% 12.27% 6.92%
Payout ratio 1.89 1.13 0.77

Size

Metric CCAP SAR Asset Management median
Market cap 352.98m 278.68m 721.34m

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