Neostellar Capital Corp. (NSLR) vs Stellus Capital Investment Corporation (SCM)

Neostellar Capital Corp. and Stellus Capital Investment Corporation are both Asset Management companies. Stellus Capital Investment Corporation is the larger, with a market value of $205.6M against $148.3M — 1.4× the size. Neostellar Capital Corp. trades at the lower P/E: 1.5× against 7.1×. Stellus Capital Investment Corporation grew revenue faster over the last twelve months: −5.52% against −26.3%. Stellus Capital Investment Corporation has the higher net margin (30.7% vs 0.00%) and the higher return on invested capital (2.12% vs −7.88%). Both pay a dividend; Stellus Capital Investment Corporation yields more (17.7% vs 4.47%). Across the 19 metrics below, Stellus Capital Investment Corporation leads on 10 and Neostellar Capital Corp. on 9.

Valuation

Metric NSLR SCM Asset Management median
P/E 1.47 7.08 13.38
P/S 72.13 2.15 2.99
P/B 0.44 0.57 0.91
Price to free cash flow n/m 4.63 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 68.16% 14.13% 4.67%
Free cash flow yield (11.63%) 21.58% 4.85%

Profitability

Metric NSLR SCM Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 0.00% 70.04% 27.27%
Net margin 0.00% 30.66% 11.89%
Free cash flow margin 0.00% 46.33% 5.96%
Return on equity 33.77% 8.02% 4.57%
Return on assets 26.30% 2.95% 1.40%
Return on invested capital (7.88%) 2.12% 2.12%

Growth

Metric NSLR SCM Asset Management median
Revenue growth (TTM) (26.32%) (5.52%) 7.26%
EPS growth (last fiscal year) 211.25% (46.93%) (5.64%)
Revenue growth, 5-year CAGR (1.56%) 12.51% 11.84%
Net income growth, 5-year CAGR (8.32%) 6.02% 0.00%

Health

Metric NSLR SCM Asset Management median
Debt to equity 0.00 1.63 0.40
Current ratio 6.76 0.06 1.23
Net debt to EBITDA (0.48) 8.41 1.06

Dividend

Metric NSLR SCM Asset Management median
Dividend yield 4.47% 17.72% 6.43%
Payout ratio 0.09 1.25 0.91

Size

Metric NSLR SCM Asset Management median
Market cap 148.25m 205.62m 692.54m

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