Chicago Atlantic BDC, Inc. (LIEN) vs Palmer Square Capital BDC Inc. (PSBD)

Chicago Atlantic BDC, Inc. and Palmer Square Capital BDC Inc. are both Asset Management companies. Palmer Square Capital BDC Inc. is the larger, with a market value of $315.1M against $235.3M — 1.3× the size. Palmer Square Capital BDC Inc. has negative trailing earnings, so its P/E is not meaningful; Chicago Atlantic BDC, Inc. trades at 7.2×. Chicago Atlantic BDC, Inc. grew revenue faster over the last twelve months: 46.9% against −14.9%. Chicago Atlantic BDC, Inc. has the higher net margin (52.8% vs −26.7%) and the higher return on invested capital (0.00% vs 0.00%). Across the 16 metrics below, Chicago Atlantic BDC, Inc. leads on 10 and Palmer Square Capital BDC Inc. on 6.

Valuation

Metric LIEN PSBD Asset Management median
P/E 7.22 n/m 14.62
P/S 3.82 2.65 2.97
P/B 0.76 0.75 0.94
Price to free cash flow n/m 2.47 8.93
EV/EBITDA n/m n/m 10.32
EV/Sales (1.78) (3.62) 5.72
Earnings yield 13.84% (10.07%) 4.53%
Free cash flow yield (1.32%) 40.55% 4.65%

Profitability

Metric LIEN PSBD Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 63.70% 83.05% 33.03%
Net margin 52.82% (26.72%) 13.53%
Free cash flow margin (5.03%) 107.44% 12.44%
Return on equity 10.48% (6.75%) 4.83%
Return on assets 9.38% (2.51%) 1.57%
Return on invested capital 0.00% 0.00% 3.04%

Growth

Metric LIEN PSBD Asset Management median
Revenue growth (TTM) 46.89% (14.85%) 6.97%
EPS growth (last fiscal year) 56.99% (106.80%) —
Revenue growth, 5-year CAGR 457.31% 37.33% 12.13%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric LIEN PSBD Asset Management median
Debt to equity 0.00 0.97 0.42
Current ratio 8.29 1.56 1.28
Net debt to EBITDA (10.43) (7.53) 1.06

Dividend

Metric LIEN PSBD Asset Management median
Dividend yield 5.83% — 6.92%
Payout ratio 0.00 — 0.77

Size

Metric LIEN PSBD Asset Management median
Market cap 235.28m 315.10m 721.34m

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