Carlyle Secured Lending, Inc. (CGBD) vs Prospect Capital Corporation (PSEC)

Carlyle Secured Lending, Inc. and Prospect Capital Corporation are both Asset Management companies. Carlyle Secured Lending, Inc. and Prospect Capital Corporation are of similar size ($749.3M and $739.3M). Prospect Capital Corporation has negative trailing earnings, so its P/E is not meaningful; Carlyle Secured Lending, Inc. trades at 20.7×. Carlyle Secured Lending, Inc. grew revenue faster over the last twelve months: 4.60% against −6.93%. Carlyle Secured Lending, Inc. has the higher net margin (14.4% vs −11.3%) and the lower return on invested capital (2.73% vs 3.42%). Both pay a dividend; Prospect Capital Corporation yields more (34.5% vs 13.8%). Across the 20 metrics below, Prospect Capital Corporation leads on 12 and Carlyle Secured Lending, Inc. on 8.

Valuation

Metric CGBD PSEC Asset Management median
P/E 20.68 n/m 13.38
P/S 2.91 1.15 2.99
P/B 0.70 0.25 0.91
Price to free cash flow 4.42 1.18 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 4.84% (10.79%) 4.67%
Free cash flow yield 22.63% 84.91% 4.85%

Profitability

Metric CGBD PSEC Asset Management median
Gross margin 100.00% 74.50% 100.00%
Operating margin 0.00% 71.06% 27.27%
Net margin 14.39% (11.32%) 11.89%
Free cash flow margin 65.93% 97.70% 5.96%
Return on equity 3.26% (2.44%) 4.57%
Return on assets 1.47% (1.13%) 1.40%
Return on invested capital 2.73% 3.42% 2.12%

Growth

Metric CGBD PSEC Asset Management median
Revenue growth (TTM) 4.60% (6.93%) 7.26%
EPS growth (last fiscal year) (36.08%) 104.44% (5.64%)
Revenue growth, 5-year CAGR 7.01% 0.24% 11.84%
Net income growth, 5-year CAGR 72.30% (50.08%) 0.00%

Health

Metric CGBD PSEC Asset Management median
Debt to equity 1.22 0.34 0.40
Current ratio 0.00 0.87 1.23
Net debt to EBITDA 9.27 3.95 1.06

Dividend

Metric CGBD PSEC Asset Management median
Dividend yield 13.82% 34.53% 6.43%
Payout ratio 2.95 16.00 0.91

Size

Metric CGBD PSEC Asset Management median
Market cap 749.28m 739.34m 692.54m

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