Ellington Credit Company (EARN) vs WhiteHorse Finance, Inc. (WHF)

Ellington Credit Company and WhiteHorse Finance, Inc. are both Asset Management companies. WhiteHorse Finance, Inc. is the larger, with a market value of $164.5M against $127.1M — 1.3× the size. WhiteHorse Finance, Inc. trades at the lower P/E: 9.6× against 11.5×. Ellington Credit Company grew revenue faster over the last twelve months: 17.2% against −19.9%. WhiteHorse Finance, Inc. has the higher net margin (26.9% vs 13.2%) and the higher return on invested capital (2.67% vs 1.60%). Both pay a dividend; Ellington Credit Company yields more (30.1% vs 9.89%). Across the 21 metrics below, WhiteHorse Finance, Inc. leads on 17 and Ellington Credit Company on 4.

Valuation

Metric EARN WHF Asset Management median
P/E 11.53 9.59 13.99
P/S 1.64 2.51 2.76
P/B 0.42 0.65 0.85
Price to free cash flow 10.32 2.10 8.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 8.67% 10.42% 4.72%
Free cash flow yield 9.69% 47.61% 4.44%

Profitability

Metric EARN WHF Asset Management median
Gross margin 94.17% 100.00% 100.00%
Operating margin 12.60% 67.65% 33.42%
Net margin 13.21% 26.88% 13.37%
Free cash flow margin 15.86% 119.28% 12.36%
Return on equity 3.99% 6.65% 4.79%
Return on assets 0.00% 2.75% 1.55%
Return on invested capital 1.60% 2.67% 2.97%

Growth

Metric EARN WHF Asset Management median
Revenue growth (TTM) 17.19% (19.92%) 7.42%
EPS growth (last fiscal year) (8.87%) 31.91% (6.67%)
Revenue growth, 5-year CAGR 2.61% 3.33% 12.51%
Net income growth, 5-year CAGR (21.61%) (14.67%) 0.00%

Health

Metric EARN WHF Asset Management median
Debt to equity 2.91 1.29 0.44
Current ratio 0.14 1.39 1.30
Net debt to EBITDA 50.05 6.19 1.02

Dividend

Metric EARN WHF Asset Management median
Dividend yield 30.06% 9.89% 6.60%
Payout ratio — 0.95 0.94

Size

Metric EARN WHF Asset Management median
Market cap 127.11m 164.51m 694.86m

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