Main Street Capital Corporation (MAIN) vs StepStone Group Inc. (STEP)

Main Street Capital Corporation and StepStone Group Inc. are both Asset Management companies. Main Street Capital Corporation and StepStone Group Inc. are of similar size ($5.2B and $5.1B). StepStone Group Inc. has negative trailing earnings, so its P/E is not meaningful; Main Street Capital Corporation trades at 10.8×. StepStone Group Inc. grew revenue faster over the last twelve months: 48.5% against 3.00%. Main Street Capital Corporation has the higher net margin (78.5% vs −30.5%) and the higher return on invested capital (6.18% vs −42.5%). Both pay a dividend; Main Street Capital Corporation yields more (6.81% vs 4.13%). Across the 18 metrics below, Main Street Capital Corporation leads on 13 and StepStone Group Inc. on 5.

Valuation

Metric MAIN STEP Asset Management median
P/E 10.83 n/m 13.99
P/S 8.71 1.70 2.76
P/B 1.58 3.52 0.85
Price to free cash flow n/m n/m 8.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 9.23% (18.54%) 4.72%
Free cash flow yield (2.99%) (12.87%) 4.44%

Profitability

Metric MAIN STEP Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 86.99% (58.22%) 33.42%
Net margin 78.49% (30.53%) 13.37%
Free cash flow margin (26.05%) (21.88%) 12.36%
Return on equity 14.92% (55.72%) 4.79%
Return on assets 8.04% (9.77%) 1.55%
Return on invested capital 6.18% (42.51%) 2.97%

Growth

Metric MAIN STEP Asset Management median
Revenue growth (TTM) 3.00% 48.46% 7.42%
EPS growth (last fiscal year) (5.64%) (169.05%) (6.67%)
Revenue growth, 5-year CAGR 20.53% 20.41% 12.51%
Net income growth, 5-year CAGR 75.80% 0.00% 0.00%

Health

Metric MAIN STEP Asset Management median
Debt to equity 0.19 1.50 0.44
Current ratio 0.05 0.19 1.30
Net debt to EBITDA 1.64 (0.08) 1.02

Dividend

Metric MAIN STEP Asset Management median
Dividend yield 6.81% 4.13% 6.60%
Payout ratio 0.74 — 0.94

Size

Metric MAIN STEP Asset Management median
Market cap 5.07b 5.15b 694.86m

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