Morgan Stanley Direct Lending Fund (MSDL) vs Virtus Investment Partners, Inc. (VRTS)

Morgan Stanley Direct Lending Fund and Virtus Investment Partners, Inc. are both Asset Management companies. Morgan Stanley Direct Lending Fund is the larger, with a market value of $1.2B against $859.8M — 1.4× the size. Virtus Investment Partners, Inc. trades at the lower P/E: 7.3× against 20.7×. Virtus Investment Partners, Inc. grew revenue faster over the last twelve months: −7.16% against −9.57%. Morgan Stanley Direct Lending Fund has the higher net margin (16.0% vs 14.5%) and the higher return on invested capital (2.95% vs 0.00%). Across the 19 metrics below, Virtus Investment Partners, Inc. leads on 11 and Morgan Stanley Direct Lending Fund on 8.

Valuation

Metric MSDL VRTS Asset Management median
P/E 20.71 7.32 14.62
P/S 3.24 1.06 2.97
P/B 0.74 0.92 0.94
Price to free cash flow 4.28 n/m 8.93
EV/EBITDA 8.14 n/m 10.32
EV/Sales 8.36 (1.78) 5.72
Earnings yield 4.83% 13.66% 4.53%
Free cash flow yield 23.36% (5.96%) 4.65%

Profitability

Metric MSDL VRTS Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 79.74% 15.71% 33.03%
Net margin 15.97% 14.52% 13.53%
Free cash flow margin 75.61% (6.29%) 12.44%
Return on equity 3.48% 12.99% 4.83%
Return on assets 1.57% 2.91% 1.57%
Return on invested capital 2.95% 0.00% 3.04%

Growth

Metric MSDL VRTS Asset Management median
Revenue growth (TTM) (9.57%) (7.16%) 6.97%
EPS growth (last fiscal year) (42.39%) 18.24% —
Revenue growth, 5-year CAGR 78.53% 7.15% 12.13%
Net income growth, 5-year CAGR 46.17% 11.60% 0.00%

Health

Metric MSDL VRTS Asset Management median
Debt to equity 1.20 0.44 0.42
Current ratio 1.71 10.54 1.28
Net debt to EBITDA 5.42 (12.38) 1.06

Dividend

Metric MSDL VRTS Asset Management median
Dividend yield — 3.41% 6.92%
Payout ratio — 0.35 0.77

Size

Metric MSDL VRTS Asset Management median
Market cap 1.21b 859.76m 721.34m

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