PennantPark Investment Corporation (PNNT) vs Saratoga Investment Corp (SAR)

PennantPark Investment Corporation and Saratoga Investment Corp are both Asset Management companies. Saratoga Investment Corp is the larger, with a market value of $236.8M against $206.3M — 1.1× the size. Saratoga Investment Corp has negative trailing earnings, so its P/E is not meaningful; PennantPark Investment Corporation trades at 19.6×. Saratoga Investment Corp grew revenue faster over the last twelve months: −4.15% against −19.9%. PennantPark Investment Corporation has the higher net margin (9.66% vs −3.35%) and the lower return on invested capital (2.65% vs 6.21%). Both pay a dividend; Saratoga Investment Corp yields more (22.9% vs 13.2%). Across the 19 metrics below, PennantPark Investment Corporation leads on 10 and Saratoga Investment Corp on 9.

Valuation

Metric PNNT SAR Asset Management median
P/E 19.59 n/m 13.99
P/S 1.89 1.98 2.76
P/B 0.46 0.70 0.85
Price to free cash flow 1.75 n/m 8.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 5.11% (1.65%) 4.72%
Free cash flow yield 57.03% (62.53%) 4.44%

Profitability

Metric PNNT SAR Asset Management median
Gross margin 80.01% 100.00% 100.00%
Operating margin 74.72% 67.89% 33.42%
Net margin 9.66% (3.35%) 13.37%
Free cash flow margin 107.91% (124.08%) 12.36%
Return on equity 2.23% (1.09%) 4.79%
Return on assets 0.81% (0.34%) 1.55%
Return on invested capital 2.65% 6.21% 2.97%

Growth

Metric PNNT SAR Asset Management median
Revenue growth (TTM) (19.87%) (4.15%) 7.42%
EPS growth (last fiscal year) (33.33%) 14.36% (6.67%)
Revenue growth, 5-year CAGR 4.07% 16.87% 12.51%
Net income growth, 5-year CAGR 0.00% 19.89% 0.00%

Health

Metric PNNT SAR Asset Management median
Debt to equity 1.28 0.20 0.44
Current ratio 0.18 0.13 1.30
Net debt to EBITDA 7.74 0.50 1.02

Dividend

Metric PNNT SAR Asset Management median
Dividend yield 13.16% 22.85% 6.60%
Payout ratio 2.58 3.50 0.94

Size

Metric PNNT SAR Asset Management median
Market cap 206.34m 236.82m 694.86m

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