Goldman Sachs BDC, Inc. (GSBD) vs Prospect Capital Corporation (PSEC)

Goldman Sachs BDC, Inc. and Prospect Capital Corporation are both Asset Management companies. Goldman Sachs BDC, Inc. is the larger, with a market value of $1.0B against $870.1M — 1.1× the size. Goldman Sachs BDC, Inc. trades at the lower P/E: 16.8× against 32.0×. Prospect Capital Corporation grew revenue faster over the last twelve months: −11.1% against −15.4%. Goldman Sachs BDC, Inc. has the higher net margin (17.2% vs 4.66%) and the lower return on invested capital (3.09% vs 3.23%). Both pay a dividend; Prospect Capital Corporation yields more (32.8% vs 15.8%). Across the 21 metrics below, Prospect Capital Corporation leads on 12 and Goldman Sachs BDC, Inc. on 9.

Valuation

Metric GSBD PSEC Asset Management median
P/E 16.79 32.00 13.99
P/S 2.89 1.20 2.76
P/B 0.72 0.26 0.85
Price to free cash flow 12.07 1.49 8.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 5.96% 3.13% 4.72%
Free cash flow yield 8.29% 67.25% 4.44%

Profitability

Metric GSBD PSEC Asset Management median
Gross margin 100.00% 75.38% 100.00%
Operating margin 80.87% 71.35% 33.42%
Net margin 17.19% 4.66% 13.37%
Free cash flow margin 23.94% 80.74% 12.36%
Return on equity 4.07% 1.01% 4.79%
Return on assets 1.75% 0.45% 1.55%
Return on invested capital 3.09% 3.23% 2.97%

Growth

Metric GSBD PSEC Asset Management median
Revenue growth (TTM) (15.41%) (11.12%) 7.42%
EPS growth (last fiscal year) 87.27% 104.44% (6.67%)
Revenue growth, 5-year CAGR 16.15% 0.24% 12.51%
Net income growth, 5-year CAGR (7.50%) (50.08%) 0.00%

Health

Metric GSBD PSEC Asset Management median
Debt to equity 1.36 0.41 0.44
Current ratio 0.69 0.87 1.30
Net debt to EBITDA 6.17 3.95 1.02

Dividend

Metric GSBD PSEC Asset Management median
Dividend yield 15.81% 32.81% 6.60%
Payout ratio 2.65 10.50 0.94

Size

Metric GSBD PSEC Asset Management median
Market cap 1.00b 870.12m 694.86m

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