New Mountain Finance Corporation (NMFC) vs Noah Holdings Ltd. (NOAH)

New Mountain Finance Corporation and Noah Holdings Ltd. are both Asset Management companies. New Mountain Finance Corporation is the larger, with a market value of $651.3M against $494.6M — 1.3× the size. New Mountain Finance Corporation has negative trailing earnings, so its P/E is not meaningful; Noah Holdings Ltd. trades at 5.8×. Noah Holdings Ltd. grew revenue faster over the last twelve months: 8.07% against −60.6%. Noah Holdings Ltd. has the higher net margin (22.7% vs −41.1%) and the higher return on invested capital (12.3% vs −1.29%). Both pay a dividend; Noah Holdings Ltd. yields more (19.1% vs 16.9%). Across the 19 metrics below, Noah Holdings Ltd. leads on 14 and New Mountain Finance Corporation on 5.

Valuation

Metric NMFC NOAH Asset Management median
P/E n/m 5.78 13.99
P/S 5.40 1.29 2.76
P/B 0.61 0.35 0.85
Price to free cash flow 0.96 2.23 8.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (6.98%) 17.29% 4.72%
Free cash flow yield 103.81% 44.79% 4.44%

Profitability

Metric NMFC NOAH Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 0.00% 33.71% 33.42%
Net margin (41.05%) 22.67% 13.37%
Free cash flow margin 560.64% 57.74% 12.36%
Return on equity (4.12%) 0.00% 4.79%
Return on assets (1.74%) 5.17% 1.55%
Return on invested capital (1.29%) 12.31% 2.97%

Growth

Metric NMFC NOAH Asset Management median
Revenue growth (TTM) (60.64%) 8.07% 7.42%
EPS growth (last fiscal year) (84.47%) 23.91% (6.67%)
Revenue growth, 5-year CAGR (1.03%) (5.93%) 12.51%
Net income growth, 5-year CAGR (22.37%) 0.00% 0.00%

Health

Metric NMFC NOAH Asset Management median
Debt to equity 1.30 0.00 0.44
Current ratio 13.33 3.61 1.30
Net debt to EBITDA 0.00 (5.39) 1.02

Dividend

Metric NMFC NOAH Asset Management median
Dividend yield 16.94% 19.12% 6.60%
Payout ratio — 1.11 0.94

Size

Metric NMFC NOAH Asset Management median
Market cap 651.25m 494.58m 694.86m

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