PennantPark Investment Corporation (PNNT) vs Sound Point Meridian Capital, Inc. (SPMC)

PennantPark Investment Corporation and Sound Point Meridian Capital, Inc. are both Asset Management companies. PennantPark Investment Corporation is the larger, with a market value of $218.7M against $179.0M — 1.2× the size. Sound Point Meridian Capital, Inc. has negative trailing earnings, so its P/E is not meaningful; PennantPark Investment Corporation trades at 21.4×. Across the 2 metrics below, PennantPark Investment Corporation leads on 2 and Sound Point Meridian Capital, Inc. on 0.

Valuation

Metric PNNT SPMC Asset Management median
P/E 21.39 n/m 14.62
P/S 2.07 — 2.97
P/B 0.51 — 0.94
Price to free cash flow 1.92 — 8.93
EV/EBITDA 9.79 — 10.32
EV/Sales 7.18 — 5.72
Earnings yield 4.67% (68.08%) 4.53%
Free cash flow yield 52.22% — 4.65%

Profitability

Metric PNNT SPMC Asset Management median
Gross margin 80.01% — 100.00%
Operating margin 74.72% — 33.03%
Net margin 9.66% — 13.53%
Free cash flow margin 107.91% — 12.44%
Return on equity 2.23% — 4.83%
Return on assets 0.81% 0.00% 1.57%
Return on invested capital 2.65% — 3.04%

Growth

Metric PNNT SPMC Asset Management median
Revenue growth (TTM) (19.87%) — 6.97%
EPS growth (last fiscal year) (33.33%) — —
Revenue growth, 5-year CAGR 4.07% — 12.13%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric PNNT SPMC Asset Management median
Debt to equity 1.28 — 0.42
Current ratio 0.18 — 1.28
Net debt to EBITDA 7.74 — 1.06

Dividend

Metric PNNT SPMC Asset Management median
Dividend yield 12.94% — 6.92%
Payout ratio 0.99 — 0.77

Size

Metric PNNT SPMC Asset Management median
Market cap 218.74m 179.01m 721.34m

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