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 is the larger, with a market value of $1.9B against $1.7B — 1.2× the size. Sixth Street Specialty Lending, Inc. trades at the lower P/E: 17.9× against 25.4×. Patria Investments Limited grew revenue faster over the last twelve months: 7.70% against −13.8%. Sixth Street Specialty Lending, Inc. has the higher net margin (21.8% vs 17.5%) and the lower return on invested capital (3.54% vs 8.38%). Both pay a dividend; Sixth Street Specialty Lending, Inc. yields more (10.6% vs 5.34%). Across the 21 metrics below, Patria Investments Limited leads on 12 and Sixth Street Specialty Lending, Inc. on 9.

Valuation

Metric PAX TSLX Asset Management median
P/E 25.41 17.93 13.99
P/S 4.41 3.96 2.76
P/B 2.95 1.05 0.85
Price to free cash flow 12.43 15.64 8.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 3.94% 5.58% 4.72%
Free cash flow yield 8.04% 6.39% 4.44%

Profitability

Metric PAX TSLX Asset Management median
Gross margin 41.19% 100.00% 100.00%
Operating margin 27.36% 75.07% 33.42%
Net margin 17.50% 21.77% 13.37%
Free cash flow margin 35.48% 25.30% 12.36%
Return on equity 12.20% 5.62% 4.79%
Return on assets 4.76% 2.56% 1.55%
Return on invested capital 8.38% 3.54% 2.97%

Growth

Metric PAX TSLX Asset Management median
Revenue growth (TTM) 7.70% (13.78%) 7.42%
EPS growth (last fiscal year) 12.50% (10.84%) (6.67%)
Revenue growth, 5-year CAGR 27.12% 10.71% 12.51%
Net income growth, 5-year CAGR 7.80% (0.87%) 0.00%

Health

Metric PAX TSLX Asset Management median
Debt to equity 0.54 1.24 0.44
Current ratio 1.04 9.83 1.30
Net debt to EBITDA (0.30) 5.29 1.02

Dividend

Metric PAX TSLX Asset Management median
Dividend yield 5.34% 10.57% 6.60%
Payout ratio 1.36 1.89 0.94

Size

Metric PAX TSLX Asset Management median
Market cap 1.94b 1.68b 694.86m

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