PennantPark Investment Corporation (PNNT) vs Runway Growth Finance Corp. (RWAY)

PennantPark Investment Corporation and Runway Growth Finance Corp. are both Asset Management companies. Runway Growth Finance Corp. is the larger, with a market value of $256.5M against $212.9M — 1.2× the size. PennantPark Investment Corporation trades at the lower P/E: 20.9× against 41.1×. Runway Growth Finance Corp. grew revenue faster over the last twelve months: −2.83% against −19.9%. PennantPark Investment Corporation has the higher net margin (9.66% vs 7.62%) and the lower return on invested capital (2.65% vs 7.17%). Both pay a dividend; Runway Growth Finance Corp. yields more (21.4% vs 12.3%). Across the 20 metrics below, PennantPark Investment Corporation leads on 10 and Runway Growth Finance Corp. on 10.

Valuation

Metric PNNT RWAY Asset Management median
P/E 20.94 41.13 13.38
P/S 2.02 1.89 2.99
P/B 0.50 0.52 0.91
Price to free cash flow 1.87 n/m 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 4.78% 2.43% 4.67%
Free cash flow yield 53.35% (6.79%) 4.85%

Profitability

Metric PNNT RWAY Asset Management median
Gross margin 80.01% 100.00% 100.00%
Operating margin 74.72% 75.20% 27.27%
Net margin 9.66% 7.62% 11.89%
Free cash flow margin 107.91% (12.79%) 5.96%
Return on equity 2.23% 2.12% 4.57%
Return on assets 0.81% 1.02% 1.40%
Return on invested capital 2.65% 7.17% 2.12%

Growth

Metric PNNT RWAY Asset Management median
Revenue growth (TTM) (19.87%) (2.83%) 7.26%
EPS growth (last fiscal year) (33.33%) (50.79%) (5.64%)
Revenue growth, 5-year CAGR 4.07% 18.97% 11.84%
Net income growth, 5-year CAGR 0.00% (6.24%) 0.00%

Health

Metric PNNT RWAY Asset Management median
Debt to equity 1.28 0.00 0.40
Current ratio 0.18 0.00 1.23
Net debt to EBITDA 7.74 4.42 1.06

Dividend

Metric PNNT RWAY Asset Management median
Dividend yield 12.31% 21.39% 6.43%
Payout ratio 2.58 8.80 0.91

Size

Metric PNNT RWAY Asset Management median
Market cap 212.87m 256.49m 692.54m

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