Patria Investments Limited (PAX) vs Sixth Street Specialty Lending, Inc. (TSLX)

Patria Investments Limited and Sixth Street Specialty Lending, Inc. are both Asset Management companies. Patria Investments Limited and Sixth Street Specialty Lending, Inc. are of similar size ($1.7B and $1.6B). Sixth Street Specialty Lending, Inc. trades at the lower P/E: 19.1× against 22.8×. Patria Investments Limited grew revenue faster over the last twelve months: 2.40% against −13.8%. Sixth Street Specialty Lending, Inc. has the higher net margin (21.8% vs 19.3%) and the lower return on invested capital (3.54% vs 8.82%). Both pay a dividend; Sixth Street Specialty Lending, Inc. yields more (8.60% vs 6.21%). Across the 23 metrics below, Patria Investments Limited leads on 15 and Sixth Street Specialty Lending, Inc. on 8.

Valuation

Metric PAX TSLX Asset Management median
P/E 22.76 19.09 14.62
P/S 4.12 4.22 2.97
P/B 2.64 1.11 0.94
Price to free cash flow 8.99 16.66 8.93
EV/EBITDA 12.58 12.70 10.32
EV/Sales 4.98 9.17 5.72
Earnings yield 4.39% 5.24% 4.53%
Free cash flow yield 11.12% 6.00% 4.65%

Profitability

Metric PAX TSLX Asset Management median
Gross margin 43.25% 100.00% 100.00%
Operating margin 28.00% 75.07% 33.03%
Net margin 19.30% 21.77% 13.53%
Free cash flow margin 45.78% 25.30% 12.44%
Return on equity 13.06% 5.62% 4.83%
Return on assets 4.95% 2.56% 1.57%
Return on invested capital 8.82% 3.54% 3.04%

Growth

Metric PAX TSLX Asset Management median
Revenue growth (TTM) 2.40% (13.78%) 6.97%
EPS growth (last fiscal year) 12.50% (10.84%) —
Revenue growth, 5-year CAGR 27.12% 10.71% 12.13%
Net income growth, 5-year CAGR 7.80% (0.87%) 0.00%

Health

Metric PAX TSLX Asset Management median
Debt to equity 0.41 1.24 0.42
Current ratio 0.62 9.83 1.28
Net debt to EBITDA (0.30) 5.29 1.06

Dividend

Metric PAX TSLX Asset Management median
Dividend yield 6.21% 8.60% 6.92%
Payout ratio 1.11 0.83 0.77

Size

Metric PAX TSLX Asset Management median
Market cap 1.64b 1.73b 721.34m

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