Morgan Stanley Direct Lending Fund (MSDL) vs Patria Investments Limited (PAX)

Morgan Stanley Direct Lending Fund and Patria Investments Limited are both Asset Management companies. Patria Investments Limited is the larger, with a market value of $1.6B against $1.2B — 1.4× the size. Morgan Stanley Direct Lending Fund trades at the lower P/E: 20.7× against 22.8×. Patria Investments Limited grew revenue faster over the last twelve months: 2.40% against −9.57%. Patria Investments Limited has the higher net margin (19.3% vs 16.0%) and the higher return on invested capital (8.82% vs 2.95%). Across the 22 metrics below, Morgan Stanley Direct Lending Fund leads on 13 and Patria Investments Limited on 9.

Valuation

Metric MSDL PAX Asset Management median
P/E 20.71 22.76 14.62
P/S 3.24 4.12 2.97
P/B 0.74 2.64 0.94
Price to free cash flow 4.28 8.99 8.93
EV/EBITDA 8.14 12.58 10.32
EV/Sales 8.36 4.98 5.72
Earnings yield 4.83% 4.39% 4.53%
Free cash flow yield 23.36% 11.12% 4.65%

Profitability

Metric MSDL PAX Asset Management median
Gross margin 100.00% 43.25% 100.00%
Operating margin 79.74% 28.00% 33.03%
Net margin 15.97% 19.30% 13.53%
Free cash flow margin 75.61% 45.78% 12.44%
Return on equity 3.48% 13.06% 4.83%
Return on assets 1.57% 4.95% 1.57%
Return on invested capital 2.95% 8.82% 3.04%

Growth

Metric MSDL PAX Asset Management median
Revenue growth (TTM) (9.57%) 2.40% 6.97%
EPS growth (last fiscal year) (42.39%) 12.50% —
Revenue growth, 5-year CAGR 78.53% 27.12% 12.13%
Net income growth, 5-year CAGR 46.17% 7.80% 0.00%

Health

Metric MSDL PAX Asset Management median
Debt to equity 1.20 0.41 0.42
Current ratio 1.71 0.62 1.28
Net debt to EBITDA 5.42 (0.30) 1.06

Dividend

Metric MSDL PAX Asset Management median
Dividend yield — 6.21% 6.92%
Payout ratio — 1.11 0.77

Size

Metric MSDL PAX Asset Management median
Market cap 1.21b 1.64b 721.34m

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