New Mountain Finance Corporation (NMFC) vs SLR Investment Corp. (SLRC)

New Mountain Finance Corporation and SLR Investment Corp. are both Asset Management companies. New Mountain Finance Corporation and SLR Investment Corp. are of similar size ($661.2M and $643.0M). New Mountain Finance Corporation has negative trailing earnings, so its P/E is not meaningful; SLR Investment Corp. trades at 11.3×. SLR Investment Corp. grew revenue faster over the last twelve months: −8.08% against −63.6%. SLR Investment Corp. has the higher net margin (28.8% vs −57.3%) and the higher return on invested capital (2.96% vs −1.54%). Both pay a dividend; New Mountain Finance Corporation yields more (16.3% vs 12.0%). Across the 19 metrics below, SLR Investment Corp. leads on 12 and New Mountain Finance Corporation on 7.

Valuation

Metric NMFC SLRC Asset Management median
P/E n/m 11.32 13.38
P/S 6.64 3.24 2.99
P/B 0.65 0.67 0.91
Price to free cash flow 1.05 3.00 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (7.72%) 8.83% 4.67%
Free cash flow yield 94.81% 33.32% 4.85%

Profitability

Metric NMFC SLRC Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 0.00% 70.35% 27.27%
Net margin (57.29%) 28.75% 11.89%
Free cash flow margin 629.18% 107.93% 5.96%
Return on equity (5.01%) 5.91% 4.57%
Return on assets (2.10%) 2.28% 1.40%
Return on invested capital (1.54%) 2.96% 2.12%

Growth

Metric NMFC SLRC Asset Management median
Revenue growth (TTM) (63.56%) (8.08%) 7.26%
EPS growth (last fiscal year) (84.47%) (3.41%) (5.64%)
Revenue growth, 5-year CAGR (1.03%) 12.41% 11.84%
Net income growth, 5-year CAGR (22.37%) 43.04% 0.00%

Health

Metric NMFC SLRC Asset Management median
Debt to equity 1.29 1.14 0.40
Current ratio 9.89 1.09 1.23
Net debt to EBITDA 0.00 5.05 1.06

Dividend

Metric NMFC SLRC Asset Management median
Dividend yield 16.29% 12.01% 6.43%
Payout ratio — 1.36 0.91

Size

Metric NMFC SLRC Asset Management median
Market cap 661.16m 642.97m 692.54m

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