Neostellar Capital Corp. (NSLR) vs Sound Point Meridian Capital, Inc. (SPMC)

Neostellar Capital Corp. and Sound Point Meridian Capital, Inc. are both Asset Management companies. Neostellar Capital Corp. is the larger, with a market value of $148.3M against $115.8M — 1.3× the size. Sound Point Meridian Capital, Inc. has negative trailing earnings, so its P/E is not meaningful; Neostellar Capital Corp. trades at 1.5×. Both pay a dividend; Sound Point Meridian Capital, Inc. yields more (41.6% vs 4.47%). Across the 3 metrics below, Neostellar Capital Corp. leads on 2 and Sound Point Meridian Capital, Inc. on 1.

Valuation

Metric NSLR SPMC Asset Management median
P/E 1.47 n/m 13.38
P/S 72.13 — 2.99
P/B 0.44 — 0.91
Price to free cash flow n/m — 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 68.16% (93.23%) 4.67%
Free cash flow yield (11.63%) — 4.85%

Profitability

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

Growth

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

Health

Metric NSLR SPMC Asset Management median
Debt to equity 0.00 — 0.40
Current ratio 6.76 — 1.23
Net debt to EBITDA (0.48) — 1.06

Dividend

Metric NSLR SPMC Asset Management median
Dividend yield 4.47% 41.61% 6.43%
Payout ratio 0.09 — 0.91

Size

Metric NSLR SPMC Asset Management median
Market cap 148.25m 115.83m 692.54m

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