Golub Capital BDC, Inc. (GBDC) vs Hercules Capital, Inc. (HTGC)

Golub Capital BDC, Inc. and Hercules Capital, Inc. are both Asset Management companies. Golub Capital BDC, Inc. and Hercules Capital, Inc. are of similar size ($3.2B and $3.1B). Hercules Capital, Inc. trades at the lower P/E: 8.1× against 19.2×. Hercules Capital, Inc. grew revenue faster over the last twelve months: 12.3% against −8.73%. Hercules Capital, Inc. has the higher net margin (67.7% vs 21.5%) and the higher return on invested capital (4.64% vs 2.81%). Both pay a dividend; Hercules Capital, Inc. yields more (9.25% vs 9.10%). Across the 22 metrics below, Hercules Capital, Inc. leads on 15 and Golub Capital BDC, Inc. on 7.

Valuation

Metric GBDC HTGC Asset Management median
P/E 19.17 8.12 14.62
P/S 4.05 5.56 2.97
P/B 0.88 1.38 0.94
Price to free cash flow 3.53 373.68 8.93
EV/EBITDA 13.25 11.96 10.32
EV/Sales 10.27 9.60 5.72
Earnings yield 5.22% 12.32% 4.53%
Free cash flow yield 28.34% 0.27% 4.65%

Profitability

Metric GBDC HTGC Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 78.18% 78.48% 33.03%
Net margin 21.45% 67.68% 13.53%
Free cash flow margin 114.85% 1.49% 12.44%
Return on equity 4.46% 17.32% 4.83%
Return on assets 1.95% 8.54% 1.57%
Return on invested capital 2.81% 4.64% 3.04%

Growth

Metric GBDC HTGC Asset Management median
Revenue growth (TTM) (8.73%) 12.34% 6.97%
EPS growth (last fiscal year) 4.41% 14.91% —
Revenue growth, 5-year CAGR 23.84% 13.14% 12.13%
Net income growth, 5-year CAGR 47.00% 8.37% 0.00%

Health

Metric GBDC HTGC Asset Management median
Debt to equity 1.22 1.03 0.42
Current ratio 1.33 1.37 1.28
Net debt to EBITDA 6.94 5.21 1.06

Dividend

Metric GBDC HTGC Asset Management median
Dividend yield 9.10% 9.25% 6.92%
Payout ratio 1.33 0.70 0.77

Size

Metric GBDC HTGC Asset Management median
Market cap 3.22b 3.14b 721.34m

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