Gladstone Capital Corporation (GLAD) vs BLACKROCK TCP CAPITAL CORP. (TCPC)

Gladstone Capital Corporation and BLACKROCK TCP CAPITAL CORP. are both Asset Management companies. Gladstone Capital Corporation is the larger, with a market value of $434.2M against $335.6M — 1.3× the size. BLACKROCK TCP CAPITAL CORP. 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 −26.1%. Gladstone Capital Corporation has the higher net margin (48.7% vs −61.3%) and the higher return on invested capital (5.89% vs 4.15%). Both pay a dividend; BLACKROCK TCP CAPITAL CORP. yields more (11.9% vs 9.75%). Across the 19 metrics below, BLACKROCK TCP CAPITAL CORP. leads on 10 and Gladstone Capital Corporation on 9.

Valuation

Metric GLAD TCPC Asset Management median
P/E 9.05 n/m 14.62
P/S 4.42 1.90 2.97
P/B 0.90 0.61 0.94
Price to free cash flow n/m 0.84 8.93
EV/EBITDA 10.51 9.32 10.32
EV/Sales 6.55 6.15 5.72
Earnings yield 11.05% (31.92%) 4.53%
Free cash flow yield (34.47%) 118.78% 4.65%

Profitability

Metric GLAD TCPC Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 70.28% 84.51% 33.03%
Net margin 48.67% (61.27%) 13.53%
Free cash flow margin (152.38%) 225.77% 12.44%
Return on equity 10.03% (16.78%) 4.83%
Return on assets 5.50% (6.36%) 1.57%
Return on invested capital 5.89% 4.15% 3.04%

Growth

Metric GLAD TCPC Asset Management median
Revenue growth (TTM) 11.29% (26.09%) 6.97%
EPS growth (last fiscal year) (41.24%) (32.91%) —
Revenue growth, 5-year CAGR 13.19% 3.23% 12.13%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric GLAD TCPC Asset Management median
Debt to equity 0.00 1.65 0.42
Current ratio 0.03 29.31 1.28
Net debt to EBITDA (0.30) 11.05 1.06

Dividend

Metric GLAD TCPC Asset Management median
Dividend yield 9.75% 11.88% 6.92%
Payout ratio 0.91 4.27 0.77

Size

Metric GLAD TCPC Asset Management median
Market cap 434.24m 335.61m 721.34m

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