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 — 1.3× the size. Patria Investments Limited trades at the lower P/E: 21.9× against 284×. Patria Investments Limited grew revenue faster over the last twelve months: 9.84% against −10.7%. Patria Investments Limited has the higher net margin (13.4% vs 1.34%) and the higher return on invested capital (8.59% vs 3.06%). Both pay a dividend; Morgan Stanley Direct Lending Fund yields more (13.1% vs 6.48%). Across the 21 metrics below, Patria Investments Limited leads on 12 and Morgan Stanley Direct Lending Fund on 9.

Valuation

Metric MSDL PAX Asset Management median
P/E 283.60 21.91 13.38
P/S 3.30 3.49 2.99
P/B 0.76 2.48 0.91
Price to free cash flow 3.20 10.15 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 0.35% 4.56% 4.67%
Free cash flow yield 31.27% 9.85% 4.85%

Profitability

Metric MSDL PAX Asset Management median
Gross margin 100.00% 40.17% 100.00%
Operating margin 0.00% 26.73% 27.27%
Net margin 1.34% 13.35% 11.89%
Free cash flow margin 103.35% 0.00% 5.96%
Return on equity 0.29% 9.67% 4.57%
Return on assets 0.13% 3.77% 1.40%
Return on invested capital 3.06% 8.59% 2.12%

Growth

Metric MSDL PAX Asset Management median
Revenue growth (TTM) (10.69%) 9.84% 7.26%
EPS growth (last fiscal year) (42.39%) 12.50% (5.64%)
Revenue growth, 5-year CAGR 78.53% 27.12% 11.84%
Net income growth, 5-year CAGR 46.17% 7.80% 0.00%

Health

Metric MSDL PAX Asset Management median
Debt to equity 1.21 0.56 0.40
Current ratio 0.00 0.95 1.23
Net debt to EBITDA 5.42 (0.30) 1.06

Dividend

Metric MSDL PAX Asset Management median
Dividend yield 13.05% 6.48% 6.43%
Payout ratio 37.00 1.42 0.91

Size

Metric MSDL PAX Asset Management median
Market cap 1.19b 1.57b 692.54m

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