New Mountain Finance Corporation (NMFC) vs Prospect Capital Corporation (PSEC)

New Mountain Finance Corporation and Prospect Capital Corporation are both Asset Management companies. Prospect Capital Corporation is the larger, with a market value of $739.3M against $661.2M — 1.1× the size. Prospect Capital Corporation grew revenue faster over the last twelve months: −6.93% against −63.6%. Prospect Capital Corporation has the higher net margin (−11.3% vs −57.3%) and the higher return on invested capital (3.42% vs −1.54%). Both pay a dividend; Prospect Capital Corporation yields more (34.5% vs 16.3%). Across the 20 metrics below, Prospect Capital Corporation leads on 12 and New Mountain Finance Corporation on 8.

Valuation

Metric NMFC PSEC Asset Management median
P/E n/m n/m 13.38
P/S 6.64 1.15 2.99
P/B 0.65 0.25 0.91
Price to free cash flow 1.05 1.18 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (7.72%) (10.79%) 4.67%
Free cash flow yield 94.81% 84.91% 4.85%

Profitability

Metric NMFC PSEC Asset Management median
Gross margin 100.00% 74.50% 100.00%
Operating margin 0.00% 71.06% 27.27%
Net margin (57.29%) (11.32%) 11.89%
Free cash flow margin 629.18% 97.70% 5.96%
Return on equity (5.01%) (2.44%) 4.57%
Return on assets (2.10%) (1.13%) 1.40%
Return on invested capital (1.54%) 3.42% 2.12%

Growth

Metric NMFC PSEC Asset Management median
Revenue growth (TTM) (63.56%) (6.93%) 7.26%
EPS growth (last fiscal year) (84.47%) 104.44% (5.64%)
Revenue growth, 5-year CAGR (1.03%) 0.24% 11.84%
Net income growth, 5-year CAGR (22.37%) (50.08%) 0.00%

Health

Metric NMFC PSEC Asset Management median
Debt to equity 1.29 0.34 0.40
Current ratio 9.89 0.87 1.23
Net debt to EBITDA 0.00 3.95 1.06

Dividend

Metric NMFC PSEC Asset Management median
Dividend yield 16.29% 34.53% 6.43%
Payout ratio — 16.00 0.91

Size

Metric NMFC PSEC Asset Management median
Market cap 661.16m 739.34m 692.54m

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