Gladstone Investment Corporation (GAIN) vs SLR Investment Corp. (SLRC)

Gladstone Investment Corporation and SLR Investment Corp. are both Asset Management companies. Gladstone Investment Corporation and SLR Investment Corp. are of similar size ($637.2M and $623.2M). Gladstone Investment Corporation trades at the lower P/E: 3.8× against 8.7×. Gladstone Investment Corporation grew revenue faster over the last twelve months: 9.32% against −5.79%. Gladstone Investment Corporation has the higher net margin (159.0% vs 35.2%) and the lower return on invested capital (2.36% vs 2.87%). Both pay a dividend; SLR Investment Corp. yields more (10.1% vs 6.59%). Across the 21 metrics below, SLR Investment Corp. leads on 11 and Gladstone Investment Corporation on 10.

Valuation

Metric GAIN SLRC Asset Management median
P/E 3.78 8.70 14.62
P/S 6.06 3.06 2.97
P/B 0.97 0.65 0.94
Price to free cash flow n/m 4.09 8.93
EV/EBITDA n/m 9.31 10.32
EV/Sales 6.07 6.55 5.72
Earnings yield 26.44% 11.50% 4.53%
Free cash flow yield (6.89%) 24.44% 4.65%

Profitability

Metric GAIN SLRC Asset Management median
Gross margin 61.22% 100.00% 100.00%
Operating margin 23.40% 70.27% 33.03%
Net margin 158.95% 35.20% 13.53%
Free cash flow margin (41.74%) 74.68% 12.44%
Return on equity 29.17% 7.47% 4.83%
Return on assets 14.01% 2.89% 1.57%
Return on invested capital 2.36% 2.87% 3.04%

Growth

Metric GAIN SLRC Asset Management median
Revenue growth (TTM) 9.32% (5.79%) 6.97%
EPS growth (last fiscal year) 167.98% (3.41%) —
Revenue growth, 5-year CAGR 11.84% 12.41% 12.13%
Net income growth, 5-year CAGR 34.19% 43.04% 0.00%

Health

Metric GAIN SLRC Asset Management median
Debt to equity 0.00 1.17 0.42
Current ratio 0.02 1.09 1.28
Net debt to EBITDA 0.01 5.05 1.06

Dividend

Metric GAIN SLRC Asset Management median
Dividend yield 6.59% 10.13% 6.92%
Payout ratio 0.97 1.48 0.77

Size

Metric GAIN SLRC Asset Management median
Market cap 623.21m 637.20m 721.34m

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