Carlyle Secured Lending, Inc. (CGBD) vs MidCap Financial Investment Corporation (MFIC)

Carlyle Secured Lending, Inc. and MidCap Financial Investment Corporation are both Asset Management companies. Carlyle Secured Lending, Inc. and MidCap Financial Investment Corporation are of similar size ($767.2M and $731.1M). MidCap Financial Investment Corporation has negative trailing earnings, so its P/E is not meaningful; Carlyle Secured Lending, Inc. trades at 22.1×. Carlyle Secured Lending, Inc. grew revenue faster over the last twelve months: 10.7% against −7.17%. Carlyle Secured Lending, Inc. has the higher net margin (14.3% vs −9.85%) and the lower return on invested capital (2.75% vs 5.78%). Both pay a dividend; MidCap Financial Investment Corporation yields more (11.1% vs 9.89%). Across the 21 metrics below, MidCap Financial Investment Corporation leads on 12 and Carlyle Secured Lending, Inc. on 9.

Valuation

Metric CGBD MFIC Asset Management median
P/E 22.10 n/m 14.62
P/S 3.01 2.44 2.97
P/B 0.72 0.67 0.94
Price to free cash flow 4.70 1.38 8.93
EV/EBITDA 9.15 6.54 10.32
EV/Sales 7.80 8.07 5.72
Earnings yield 4.53% (4.05%) 4.53%
Free cash flow yield 21.29% 72.49% 4.65%

Profitability

Metric CGBD MFIC Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 74.29% 86.02% 33.03%
Net margin 14.26% (9.85%) 13.53%
Free cash flow margin 64.17% 176.54% 12.44%
Return on equity 3.25% (2.39%) 4.83%
Return on assets 1.47% (0.94%) 1.57%
Return on invested capital 2.75% 5.78% 3.04%

Growth

Metric CGBD MFIC Asset Management median
Revenue growth (TTM) 10.71% (7.17%) 6.97%
EPS growth (last fiscal year) (36.08%) (46.46%) —
Revenue growth, 5-year CAGR 7.01% 8.16% 12.13%
Net income growth, 5-year CAGR 72.30% (10.80%) 0.00%

Health

Metric CGBD MFIC Asset Management median
Debt to equity 1.20 1.58 0.42
Current ratio 0.79 3.78 1.28
Net debt to EBITDA 9.27 6.41 1.06

Dividend

Metric CGBD MFIC Asset Management median
Dividend yield 9.89% 11.11% 6.92%
Payout ratio 1.08 0.97 0.77

Size

Metric CGBD MFIC Asset Management median
Market cap 767.17m 731.06m 721.34m

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