Goldman Sachs BDC, Inc. (GSBD) vs Sixth Street Specialty Lending, Inc. (TSLX)

Goldman Sachs BDC, Inc. and Sixth Street Specialty Lending, Inc. are both Asset Management companies. Sixth Street Specialty Lending, Inc. is the larger, with a market value of $1.7B against $999.6M — 1.7× the size. Goldman Sachs BDC, Inc. trades at the lower P/E: 16.9× against 18.3×. Sixth Street Specialty Lending, Inc. grew revenue faster over the last twelve months: −13.8% against −15.4%. Sixth Street Specialty Lending, Inc. has the higher net margin (21.8% vs 17.2%) and the higher return on invested capital (3.54% vs 3.09%). Both pay a dividend; Goldman Sachs BDC, Inc. yields more (15.7% vs 10.4%). Across the 20 metrics below, Goldman Sachs BDC, Inc. leads on 10 and Sixth Street Specialty Lending, Inc. on 10.

Valuation

Metric GSBD TSLX Asset Management median
P/E 16.87 18.27 14.50
P/S 2.90 4.03 2.78
P/B 0.73 1.07 0.85
Price to free cash flow 12.13 15.94 8.49
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 5.93% 5.47% 4.66%
Free cash flow yield 8.25% 6.27% 4.18%

Profitability

Metric GSBD TSLX Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 80.87% 75.07% 33.42%
Net margin 17.19% 21.77% 13.37%
Free cash flow margin 23.94% 25.30% 12.66%
Return on equity 4.07% 5.62% 4.82%
Return on assets 1.75% 2.56% 1.66%
Return on invested capital 3.09% 3.54% 3.00%

Growth

Metric GSBD TSLX Asset Management median
Revenue growth (TTM) (15.41%) (13.78%) 7.42%
EPS growth (last fiscal year) 87.27% (10.84%) (6.67%)
Revenue growth, 5-year CAGR 16.15% 10.71% 12.51%
Net income growth, 5-year CAGR (7.50%) (0.87%) 0.00%

Health

Metric GSBD TSLX Asset Management median
Debt to equity 1.36 1.24 0.44
Current ratio 0.69 9.83 1.30
Net debt to EBITDA 6.17 5.29 1.02

Dividend

Metric GSBD TSLX Asset Management median
Dividend yield 15.74% 10.37% 6.56%
Payout ratio 2.65 1.89 0.94

Size

Metric GSBD TSLX Asset Management median
Market cap 999.61m 1.68b 700.96m

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