Patria Investments Limited (PAX) vs Prospect Capital Corporation (PSEC)

Patria Investments Limited and Prospect Capital Corporation are both Asset Management companies. Patria Investments Limited is the larger, with a market value of $1.6B against $1.2B — 1.4× the size. Patria Investments Limited trades at the lower P/E: 22.8× against 43.8×. Patria Investments Limited grew revenue faster over the last twelve months: 2.40% against −11.1%. Patria Investments Limited has the higher net margin (19.3% vs 4.66%) and the higher return on invested capital (8.82% vs 3.23%). Both pay a dividend; Prospect Capital Corporation yields more (12.4% vs 6.21%). Across the 23 metrics below, Prospect Capital Corporation leads on 12 and Patria Investments Limited on 11.

Valuation

Metric PAX PSEC Asset Management median
P/E 22.76 43.80 14.62
P/S 4.12 1.64 2.97
P/B 2.64 0.36 0.94
Price to free cash flow 8.99 2.04 8.93
EV/EBITDA 12.58 6.23 10.32
EV/Sales 4.98 4.49 5.72
Earnings yield 4.39% 2.28% 4.53%
Free cash flow yield 11.12% 49.13% 4.65%

Profitability

Metric PAX PSEC Asset Management median
Gross margin 43.25% 75.38% 100.00%
Operating margin 28.00% 71.35% 33.03%
Net margin 19.30% 4.66% 13.53%
Free cash flow margin 45.78% 80.74% 12.44%
Return on equity 13.06% 1.01% 4.83%
Return on assets 4.95% 0.45% 1.57%
Return on invested capital 8.82% 3.23% 3.04%

Growth

Metric PAX PSEC Asset Management median
Revenue growth (TTM) 2.40% (11.12%) 6.97%
EPS growth (last fiscal year) 12.50% 104.44% —
Revenue growth, 5-year CAGR 27.12% 0.24% 12.13%
Net income growth, 5-year CAGR 7.80% (50.08%) 0.00%

Health

Metric PAX PSEC Asset Management median
Debt to equity 0.41 0.41 0.42
Current ratio 0.62 0.87 1.28
Net debt to EBITDA (0.30) 3.95 1.06

Dividend

Metric PAX PSEC Asset Management median
Dividend yield 6.21% 12.39% 6.92%
Payout ratio 1.11 1.31 0.77

Size

Metric PAX PSEC Asset Management median
Market cap 1.64b 1.16b 721.34m

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