Gladstone Capital Corporation (GLAD) vs Palmer Square Capital BDC Inc. (PSBD)

Gladstone Capital Corporation and Palmer Square Capital BDC Inc. are both Asset Management companies. Gladstone Capital Corporation is the larger, with a market value of $434.2M against $315.1M — 1.4× the size. Palmer Square Capital BDC Inc. has negative trailing earnings, so its P/E is not meaningful; Gladstone Capital Corporation trades at 9.0×. Gladstone Capital Corporation grew revenue faster over the last twelve months: 11.3% against −14.9%. Gladstone Capital Corporation has the higher net margin (48.7% vs −26.7%) and the higher return on invested capital (5.89% vs 0.00%). Across the 17 metrics below, Palmer Square Capital BDC Inc. leads on 9 and Gladstone Capital Corporation on 8.

Valuation

Metric GLAD PSBD Asset Management median
P/E 9.05 n/m 14.62
P/S 4.42 2.65 2.97
P/B 0.90 0.75 0.94
Price to free cash flow n/m 2.47 8.93
EV/EBITDA 10.51 n/m 10.32
EV/Sales 6.55 (3.62) 5.72
Earnings yield 11.05% (10.07%) 4.53%
Free cash flow yield (34.47%) 40.55% 4.65%

Profitability

Metric GLAD PSBD Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 70.28% 83.05% 33.03%
Net margin 48.67% (26.72%) 13.53%
Free cash flow margin (152.38%) 107.44% 12.44%
Return on equity 10.03% (6.75%) 4.83%
Return on assets 5.50% (2.51%) 1.57%
Return on invested capital 5.89% 0.00% 3.04%

Growth

Metric GLAD PSBD Asset Management median
Revenue growth (TTM) 11.29% (14.85%) 6.97%
EPS growth (last fiscal year) (41.24%) (106.80%) —
Revenue growth, 5-year CAGR 13.19% 37.33% 12.13%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric GLAD PSBD Asset Management median
Debt to equity 0.00 0.97 0.42
Current ratio 0.03 1.56 1.28
Net debt to EBITDA (0.30) (7.53) 1.06

Dividend

Metric GLAD PSBD Asset Management median
Dividend yield 9.75% — 6.92%
Payout ratio 0.91 — 0.77

Size

Metric GLAD PSBD Asset Management median
Market cap 434.24m 315.10m 721.34m

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