Fidus Investment Corporation (FDUS) vs Prospect Capital Corporation (PSEC)

Fidus Investment Corporation and Prospect Capital Corporation are both Asset Management companies. Fidus Investment Corporation and Prospect Capital Corporation are of similar size ($775.5M and $739.3M). Prospect Capital Corporation has negative trailing earnings, so its P/E is not meaningful; Fidus Investment Corporation trades at 9.4×. Fidus Investment Corporation grew revenue faster over the last twelve months: 18.5% against −6.93%. Fidus Investment Corporation has the higher net margin (43.8% vs −11.3%) and the higher return on invested capital (7.25% vs 3.42%). Both pay a dividend; Prospect Capital Corporation yields more (34.5% vs 2.20%). Across the 19 metrics below, Fidus Investment Corporation leads on 12 and Prospect Capital Corporation on 7.

Valuation

Metric FDUS PSEC Asset Management median
P/E 9.42 n/m 13.38
P/S 4.24 1.15 2.99
P/B 0.98 0.25 0.91
Price to free cash flow n/m 1.18 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 10.62% (10.79%) 4.67%
Free cash flow yield (22.85%) 84.91% 4.85%

Profitability

Metric FDUS PSEC Asset Management median
Gross margin 100.00% 74.50% 100.00%
Operating margin 71.39% 71.06% 27.27%
Net margin 43.83% (11.32%) 11.89%
Free cash flow margin (96.89%) 97.70% 5.96%
Return on equity 10.57% (2.44%) 4.57%
Return on assets 5.64% (1.13%) 1.40%
Return on invested capital 7.25% 3.42% 2.12%

Growth

Metric FDUS PSEC Asset Management median
Revenue growth (TTM) 18.47% (6.93%) 7.26%
EPS growth (last fiscal year) (3.33%) 104.44% (5.64%)
Revenue growth, 5-year CAGR 12.86% 0.24% 11.84%
Net income growth, 5-year CAGR 21.42% (50.08%) 0.00%

Health

Metric FDUS PSEC Asset Management median
Debt to equity 0.00 0.34 0.40
Current ratio 0.00 0.87 1.23
Net debt to EBITDA 1.36 3.95 1.06

Dividend

Metric FDUS PSEC Asset Management median
Dividend yield 2.20% 34.53% 6.43%
Payout ratio 0.21 16.00 0.91

Size

Metric FDUS PSEC Asset Management median
Market cap 775.53m 739.34m 692.54m

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