Ellington Credit Company (EARN) vs Sound Point Meridian Capital, Inc. (SPMC)

Ellington Credit Company and Sound Point Meridian Capital, Inc. are both Asset Management companies. Sound Point Meridian Capital, Inc. is the larger, with a market value of $179.0M against $159.2M — 1.1× the size. Sound Point Meridian Capital, Inc. has negative trailing earnings, so its P/E is not meaningful; Ellington Credit Company trades at 14.2×. Across the 1 metrics below, Ellington Credit Company leads on 1 and Sound Point Meridian Capital, Inc. on 0.

Valuation

Metric EARN SPMC Asset Management median
P/E 14.20 n/m 14.62
P/S 2.01 — 2.97
P/B 0.52 — 0.94
Price to free cash flow 12.70 — 8.93
EV/EBITDA 27.81 — 10.32
EV/Sales 12.20 — 5.72
Earnings yield 7.04% (68.08%) 4.53%
Free cash flow yield 7.87% — 4.65%

Profitability

Metric EARN SPMC Asset Management median
Gross margin 94.17% — 100.00%
Operating margin 12.60% — 33.03%
Net margin 13.21% — 13.53%
Free cash flow margin 15.86% — 12.44%
Return on equity 3.99% — 4.83%
Return on assets 0.00% 0.00% 1.57%
Return on invested capital 1.60% — 3.04%

Growth

Metric EARN SPMC Asset Management median
Revenue growth (TTM) 17.19% — 6.97%
EPS growth (last fiscal year) (8.87%) — —
Revenue growth, 5-year CAGR 2.61% — 12.13%
Net income growth, 5-year CAGR (21.61%) — 0.00%

Health

Metric EARN SPMC Asset Management median
Debt to equity 2.91 — 0.42
Current ratio 0.14 — 1.28
Net debt to EBITDA 50.05 — 1.06

Dividend

Metric EARN SPMC Asset Management median
Dividend yield 16.81% — 6.92%
Payout ratio 8.00 — 0.77

Size

Metric EARN SPMC Asset Management median
Market cap 159.17m 179.01m 721.34m

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