Gladstone Investment Corporation (GAIN) vs New Mountain Finance Corporation (NMFC)

Gladstone Investment Corporation and New Mountain Finance Corporation are both Asset Management companies. Gladstone Investment Corporation and New Mountain Finance Corporation are of similar size ($662.1M and $623.2M). New Mountain Finance Corporation has negative trailing earnings, so its P/E is not meaningful; Gladstone Investment Corporation trades at 3.8×. Gladstone Investment Corporation grew revenue faster over the last twelve months: 9.32% against −60.6%. Gladstone Investment Corporation has the higher net margin (159.0% vs −41.1%) and the higher return on invested capital (2.36% vs −1.29%). Both pay a dividend; New Mountain Finance Corporation yields more (10.0% vs 6.59%). Across the 20 metrics below, Gladstone Investment Corporation leads on 12 and New Mountain Finance Corporation on 8.

Valuation

Metric GAIN NMFC Asset Management median
P/E 3.78 n/m 14.62
P/S 6.06 5.60 2.97
P/B 0.97 0.64 0.94
Price to free cash flow n/m 1.00 8.93
EV/EBITDA n/m n/m 10.32
EV/Sales 6.07 16.48 5.72
Earnings yield 26.44% (6.73%) 4.53%
Free cash flow yield (6.89%) 100.09% 4.65%

Profitability

Metric GAIN NMFC Asset Management median
Gross margin 61.22% 100.00% 100.00%
Operating margin 23.40% 0.00% 33.03%
Net margin 158.95% (41.05%) 13.53%
Free cash flow margin (41.74%) 560.64% 12.44%
Return on equity 29.17% (4.12%) 4.83%
Return on assets 14.01% (1.74%) 1.57%
Return on invested capital 2.36% (1.29%) 3.04%

Growth

Metric GAIN NMFC Asset Management median
Revenue growth (TTM) 9.32% (60.64%) 6.97%
EPS growth (last fiscal year) 167.98% (84.47%) —
Revenue growth, 5-year CAGR 11.84% (1.03%) 12.13%
Net income growth, 5-year CAGR 34.19% (22.37%) 0.00%

Health

Metric GAIN NMFC Asset Management median
Debt to equity 0.00 1.30 0.42
Current ratio 0.02 13.33 1.28
Net debt to EBITDA 0.01 0.00 1.06

Dividend

Metric GAIN NMFC Asset Management median
Dividend yield 6.59% 10.01% 6.92%
Payout ratio 0.97 1.36 0.77

Size

Metric GAIN NMFC Asset Management median
Market cap 623.21m 662.11m 721.34m

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