PennantPark Floating Rate Capital Ltd. (PFLT) vs SLR Investment Corp. (SLRC)

PennantPark Floating Rate Capital Ltd. and SLR Investment Corp. are both Asset Management companies. PennantPark Floating Rate Capital Ltd. and SLR Investment Corp. are of similar size ($698.5M and $637.2M). SLR Investment Corp. trades at the lower P/E: 8.7× against 13.7×. PennantPark Floating Rate Capital Ltd. grew revenue faster over the last twelve months: 9.33% against −5.79%. SLR Investment Corp. has the higher net margin (35.2% vs 18.5%) and the lower return on invested capital (2.87% vs 3.51%). Both pay a dividend; PennantPark Floating Rate Capital Ltd. yields more (10.8% vs 10.1%). Across the 21 metrics below, SLR Investment Corp. leads on 11 and PennantPark Floating Rate Capital Ltd. on 10.

Valuation

Metric PFLT SLRC Asset Management median
P/E 13.71 8.70 14.62
P/S 2.56 3.06 2.97
P/B 0.68 0.65 0.94
Price to free cash flow n/m 4.09 8.93
EV/EBITDA 5.62 9.31 10.32
EV/Sales 5.72 6.55 5.72
Earnings yield 7.30% 11.50% 4.53%
Free cash flow yield (8.42%) 24.44% 4.65%

Profitability

Metric PFLT SLRC Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 76.57% 70.27% 33.03%
Net margin 18.53% 35.20% 13.53%
Free cash flow margin (21.54%) 74.68% 12.44%
Return on equity 4.77% 7.47% 4.83%
Return on assets 1.95% 2.89% 1.57%
Return on invested capital 3.51% 2.87% 3.04%

Growth

Metric PFLT SLRC Asset Management median
Revenue growth (TTM) 9.33% (5.79%) 6.97%
EPS growth (last fiscal year) (48.57%) (3.41%) —
Revenue growth, 5-year CAGR 22.32% 12.41% 12.13%
Net income growth, 5-year CAGR 29.23% 43.04% 0.00%

Health

Metric PFLT SLRC Asset Management median
Debt to equity 0.94 1.17 0.42
Current ratio 0.19 1.09 1.28
Net debt to EBITDA 3.46 5.05 1.06

Dividend

Metric PFLT SLRC Asset Management median
Dividend yield 10.75% 10.13% 6.92%
Payout ratio 14.25 1.48 0.77

Size

Metric PFLT SLRC Asset Management median
Market cap 698.50m 637.20m 721.34m

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