DeFi Development Corp. (DFDV) vs Ellington Credit Company (EARN)

DeFi Development Corp. and Ellington Credit Company are both Asset Management companies. DeFi Development Corp. and Ellington Credit Company are of similar size ($135.7M and $127.1M). DeFi Development Corp. has negative trailing earnings, so its P/E is not meaningful; Ellington Credit Company trades at 11.5×. DeFi Development Corp. grew revenue faster over the last twelve months: 328.6% against 17.2%. Ellington Credit Company has the higher net margin (13.2% vs −1,319.5%) and the higher return on invested capital (1.60% vs −79.9%). Across the 17 metrics below, Ellington Credit Company leads on 10 and DeFi Development Corp. on 7.

Valuation

Metric DFDV EARN Asset Management median
P/E n/m 11.53 13.99
P/S 6.83 1.64 2.76
P/B n/m 0.42 0.85
Price to free cash flow n/m 10.32 8.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (271.62%) 8.67% 4.72%
Free cash flow yield (139.75%) 9.69% 4.44%

Profitability

Metric DFDV EARN Asset Management median
Gross margin 97.76% 94.17% 100.00%
Operating margin (866.51%) 12.60% 33.42%
Net margin (1,319.46%) 13.21% 13.37%
Free cash flow margin (954.86%) 15.86% 12.36%
Return on equity (589.29%) 3.99% 4.79%
Return on assets (128.23%) 0.00% 1.55%
Return on invested capital (79.93%) 1.60% 2.97%

Growth

Metric DFDV EARN Asset Management median
Revenue growth (TTM) 328.61% 17.19% 7.42%
EPS growth (last fiscal year) (1,335.75%) (8.87%) (6.67%)
Revenue growth, 5-year CAGR 48.79% 2.61% 12.51%
Net income growth, 5-year CAGR 0.00% (21.61%) 0.00%

Health

Metric DFDV EARN Asset Management median
Debt to equity (10.02) 2.91 0.44
Current ratio 1.27 0.14 1.30
Net debt to EBITDA (3.50) 50.05 1.02

Dividend

Metric DFDV EARN Asset Management median
Dividend yield — 30.06% 6.60%
Payout ratio — — 0.94

Size

Metric DFDV EARN Asset Management median
Market cap 135.70m 127.11m 694.86m

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