Hercules Capital, Inc. (HTGC) vs Sprott Inc. (SII)

Hercules Capital, Inc. and Sprott Inc. are both Asset Management companies. Hercules Capital, Inc. and Sprott Inc. are of similar size ($3.1B and $2.9B). Hercules Capital, Inc. trades at the lower P/E: 8.4× against 25.9×. Sprott Inc. grew revenue faster over the last twelve months: 89.5% against 9.93%. Hercules Capital, Inc. has the higher net margin (62.8% vs 27.9%) and the lower return on invested capital (4.36% vs 49.8%). Both pay a dividend; Hercules Capital, Inc. yields more (4.95% vs 1.40%). Across the 19 metrics below, Sprott Inc. leads on 12 and Hercules Capital, Inc. on 7.

Valuation

Metric HTGC SII Asset Management median
P/E 8.36 25.90 13.35
P/S 5.29 7.19 3.01
P/B 1.29 7.36 0.91
Price to free cash flow n/m 34.75 7.27
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 11.95% 3.86% 4.59%
Free cash flow yield (5.12%) 2.88% 4.88%

Profitability

Metric HTGC SII Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 78.88% 38.45% 28.39%
Net margin 62.84% 27.87% 11.89%
Free cash flow margin (27.11%) 42.49% 5.96%
Return on equity 15.82% 30.64% 4.61%
Return on assets 7.63% 22.44% 1.45%
Return on invested capital 4.36% 49.79% 2.27%

Growth

Metric HTGC SII Asset Management median
Revenue growth (TTM) 9.93% 89.46% 7.26%
EPS growth (last fiscal year) 14.91% 36.65% (5.64%)
Revenue growth, 5-year CAGR 13.14% 18.54% 11.84%
Net income growth, 5-year CAGR 8.37% 20.08% 0.00%

Health

Metric HTGC SII Asset Management median
Debt to equity 1.10 0.00 0.39
Current ratio 1.41 2.68 1.25
Net debt to EBITDA 5.21 (1.26) 1.06

Dividend

Metric HTGC SII Asset Management median
Dividend yield 4.95% 1.40% 6.43%
Payout ratio 0.43 0.36 0.92

Size

Metric HTGC SII Asset Management median
Market cap 3.10b 2.89b 677.66m

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