New Mountain Finance Corporation (NMFC) vs PennantPark Floating Rate Capital Ltd. (PFLT)

New Mountain Finance Corporation and PennantPark Floating Rate Capital Ltd. are both Asset Management companies. New Mountain Finance Corporation and PennantPark Floating Rate Capital Ltd. are of similar size ($698.5M and $662.1M). New Mountain Finance Corporation has negative trailing earnings, so its P/E is not meaningful; PennantPark Floating Rate Capital Ltd. trades at 13.7×. PennantPark Floating Rate Capital Ltd. grew revenue faster over the last twelve months: 9.33% against −60.6%. PennantPark Floating Rate Capital Ltd. has the higher net margin (18.5% vs −41.1%) and the higher return on invested capital (3.51% vs −1.29%). Both pay a dividend; PennantPark Floating Rate Capital Ltd. yields more (10.8% vs 10.0%). Across the 19 metrics below, PennantPark Floating Rate Capital Ltd. leads on 14 and New Mountain Finance Corporation on 5.

Valuation

Metric NMFC PFLT Asset Management median
P/E n/m 13.71 14.62
P/S 5.60 2.56 2.97
P/B 0.64 0.68 0.94
Price to free cash flow 1.00 n/m 8.93
EV/EBITDA n/m 5.62 10.32
EV/Sales 16.48 5.72 5.72
Earnings yield (6.73%) 7.30% 4.53%
Free cash flow yield 100.09% (8.42%) 4.65%

Profitability

Metric NMFC PFLT Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 0.00% 76.57% 33.03%
Net margin (41.05%) 18.53% 13.53%
Free cash flow margin 560.64% (21.54%) 12.44%
Return on equity (4.12%) 4.77% 4.83%
Return on assets (1.74%) 1.95% 1.57%
Return on invested capital (1.29%) 3.51% 3.04%

Growth

Metric NMFC PFLT Asset Management median
Revenue growth (TTM) (60.64%) 9.33% 6.97%
EPS growth (last fiscal year) (84.47%) (48.57%) —
Revenue growth, 5-year CAGR (1.03%) 22.32% 12.13%
Net income growth, 5-year CAGR (22.37%) 29.23% 0.00%

Health

Metric NMFC PFLT Asset Management median
Debt to equity 1.30 0.94 0.42
Current ratio 13.33 0.19 1.28
Net debt to EBITDA 0.00 3.46 1.06

Dividend

Metric NMFC PFLT Asset Management median
Dividend yield 10.01% 10.75% 6.92%
Payout ratio 1.36 14.25 0.77

Size

Metric NMFC PFLT Asset Management median
Market cap 662.11m 698.50m 721.34m

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