MidCap Financial Investment Corporation (MFIC) vs SLR Investment Corp. (SLRC)

MidCap Financial Investment Corporation and SLR Investment Corp. are both Asset Management companies. MidCap Financial Investment Corporation is the larger, with a market value of $700.2M against $629.0M — 1.1× the size. MidCap Financial Investment Corporation has negative trailing earnings, so its P/E is not meaningful; SLR Investment Corp. trades at 8.4×. SLR Investment Corp. grew revenue faster over the last twelve months: −5.79% against −7.17%. SLR Investment Corp. has the higher net margin (35.2% vs −9.85%) and the lower return on invested capital (2.87% vs 5.78%). Both pay a dividend; MidCap Financial Investment Corporation yields more (15.7% vs 12.7%). Across the 19 metrics below, SLR Investment Corp. leads on 10 and MidCap Financial Investment Corporation on 9.

Valuation

Metric MFIC SLRC Asset Management median
P/E n/m 8.43 13.99
P/S 2.29 2.96 2.76
P/B 0.63 0.63 0.85
Price to free cash flow 1.30 3.97 8.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (4.32%) 11.86% 4.72%
Free cash flow yield 77.18% 25.21% 4.44%

Profitability

Metric MFIC SLRC Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 86.02% 70.27% 33.42%
Net margin (9.85%) 35.20% 13.37%
Free cash flow margin 176.54% 74.68% 12.36%
Return on equity (2.39%) 7.47% 4.79%
Return on assets (0.94%) 2.89% 1.55%
Return on invested capital 5.78% 2.87% 2.97%

Growth

Metric MFIC SLRC Asset Management median
Revenue growth (TTM) (7.17%) (5.79%) 7.42%
EPS growth (last fiscal year) (46.46%) (3.41%) (6.67%)
Revenue growth, 5-year CAGR 8.16% 12.41% 12.51%
Net income growth, 5-year CAGR (10.80%) 43.04% 0.00%

Health

Metric MFIC SLRC Asset Management median
Debt to equity 1.58 1.17 0.44
Current ratio 3.78 1.09 1.30
Net debt to EBITDA 6.41 5.05 1.02

Dividend

Metric MFIC SLRC Asset Management median
Dividend yield 15.71% 12.65% 6.60%
Payout ratio — 1.07 0.94

Size

Metric MFIC SLRC Asset Management median
Market cap 700.17m 629.02m 694.86m

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