Chicago Atlantic BDC, Inc. (LIEN) vs Saratoga Investment Corp (SAR)

Chicago Atlantic BDC, Inc. and Saratoga Investment Corp are both Asset Management companies. Saratoga Investment Corp is the larger, with a market value of $236.8M against $208.8M — 1.1× the size. Saratoga Investment Corp has negative trailing earnings, so its P/E is not meaningful; Chicago Atlantic BDC, Inc. trades at 6.6×. Chicago Atlantic BDC, Inc. grew revenue faster over the last twelve months: 46.9% against −4.15%. Chicago Atlantic BDC, Inc. has the higher net margin (52.8% vs −3.35%) and the lower return on invested capital (0.00% vs 6.21%). Both pay a dividend; Saratoga Investment Corp yields more (22.9% vs 14.9%). Across the 18 metrics below, Chicago Atlantic BDC, Inc. leads on 13 and Saratoga Investment Corp on 5.

Valuation

Metric LIEN SAR Asset Management median
P/E 6.58 n/m 13.99
P/S 3.48 1.98 2.76
P/B 0.69 0.70 0.85
Price to free cash flow n/m n/m 8.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 15.21% (1.65%) 4.72%
Free cash flow yield (1.45%) (62.53%) 4.44%

Profitability

Metric LIEN SAR Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 63.70% 67.89% 33.42%
Net margin 52.82% (3.35%) 13.37%
Free cash flow margin (5.03%) (124.08%) 12.36%
Return on equity 10.48% (1.09%) 4.79%
Return on assets 9.38% (0.34%) 1.55%
Return on invested capital 0.00% 6.21% 2.97%

Growth

Metric LIEN SAR Asset Management median
Revenue growth (TTM) 46.89% (4.15%) 7.42%
EPS growth (last fiscal year) 56.99% 14.36% (6.67%)
Revenue growth, 5-year CAGR 457.31% 16.87% 12.51%
Net income growth, 5-year CAGR 0.00% 19.89% 0.00%

Health

Metric LIEN SAR Asset Management median
Debt to equity 0.00 0.20 0.44
Current ratio 8.29 0.13 1.30
Net debt to EBITDA (10.43) 0.50 1.02

Dividend

Metric LIEN SAR Asset Management median
Dividend yield 14.88% 22.85% 6.60%
Payout ratio 0.98 3.50 0.94

Size

Metric LIEN SAR Asset Management median
Market cap 208.81m 236.82m 694.86m

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