MidCap Financial Investment Corporation (MFIC) vs New Mountain Finance Corporation (NMFC)

MidCap Financial Investment Corporation and New Mountain Finance Corporation are both Asset Management companies. MidCap Financial Investment Corporation is the larger, with a market value of $731.1M against $662.1M — 1.1× the size. MidCap Financial Investment Corporation grew revenue faster over the last twelve months: −7.17% against −60.6%. MidCap Financial Investment Corporation has the higher net margin (−9.85% vs −41.1%) and the higher return on invested capital (5.78% vs −1.29%). Both pay a dividend; MidCap Financial Investment Corporation yields more (11.1% vs 10.0%). Across the 20 metrics below, MidCap Financial Investment Corporation leads on 13 and New Mountain Finance Corporation on 7.

Valuation

Metric MFIC NMFC Asset Management median
P/E n/m n/m 14.62
P/S 2.44 5.60 2.97
P/B 0.67 0.64 0.94
Price to free cash flow 1.38 1.00 8.93
EV/EBITDA 6.54 n/m 10.32
EV/Sales 8.07 16.48 5.72
Earnings yield (4.05%) (6.73%) 4.53%
Free cash flow yield 72.49% 100.09% 4.65%

Profitability

Metric MFIC NMFC Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 86.02% 0.00% 33.03%
Net margin (9.85%) (41.05%) 13.53%
Free cash flow margin 176.54% 560.64% 12.44%
Return on equity (2.39%) (4.12%) 4.83%
Return on assets (0.94%) (1.74%) 1.57%
Return on invested capital 5.78% (1.29%) 3.04%

Growth

Metric MFIC NMFC Asset Management median
Revenue growth (TTM) (7.17%) (60.64%) 6.97%
EPS growth (last fiscal year) (46.46%) (84.47%) —
Revenue growth, 5-year CAGR 8.16% (1.03%) 12.13%
Net income growth, 5-year CAGR (10.80%) (22.37%) 0.00%

Health

Metric MFIC NMFC Asset Management median
Debt to equity 1.58 1.30 0.42
Current ratio 3.78 13.33 1.28
Net debt to EBITDA 6.41 0.00 1.06

Dividend

Metric MFIC NMFC Asset Management median
Dividend yield 11.11% 10.01% 6.92%
Payout ratio 0.97 1.36 0.77

Size

Metric MFIC NMFC Asset Management median
Market cap 731.06m 662.11m 721.34m

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