Palmer Square Capital BDC Inc. (PSBD) vs Runway Growth Finance Corp. (RWAY)

Palmer Square Capital BDC Inc. and Runway Growth Finance Corp. are both Asset Management companies. Palmer Square Capital BDC Inc. is the larger, with a market value of $303.1M against $256.5M — 1.2× the size. Palmer Square Capital BDC Inc. has negative trailing earnings, so its P/E is not meaningful; Runway Growth Finance Corp. trades at 41.1×. Runway Growth Finance Corp. grew revenue faster over the last twelve months: −2.83% against −14.9%. Runway Growth Finance Corp. has the higher net margin (7.62% vs 0.00%) and the higher return on invested capital (7.17% vs 0.00%). Both pay a dividend; Runway Growth Finance Corp. yields more (21.4% vs 10.9%). Across the 18 metrics below, Runway Growth Finance Corp. leads on 11 and Palmer Square Capital BDC Inc. on 7.

Valuation

Metric PSBD RWAY Asset Management median
P/E n/m 41.13 13.38
P/S 2.63 1.89 2.99
P/B 0.75 0.52 0.91
Price to free cash flow 1.85 n/m 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (6.37%) 2.43% 4.67%
Free cash flow yield 54.09% (6.79%) 4.85%

Profitability

Metric PSBD RWAY Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 83.05% 75.20% 27.27%
Net margin 0.00% 7.62% 11.89%
Free cash flow margin 0.00% (12.79%) 5.96%
Return on equity (4.49%) 2.12% 4.57%
Return on assets (1.68%) 1.02% 1.40%
Return on invested capital 0.00% 7.17% 2.12%

Growth

Metric PSBD RWAY Asset Management median
Revenue growth (TTM) (14.85%) (2.83%) 7.26%
EPS growth (last fiscal year) (106.80%) (50.79%) (5.64%)
Revenue growth, 5-year CAGR 37.33% 18.97% 11.84%
Net income growth, 5-year CAGR 0.00% (6.24%) 0.00%

Health

Metric PSBD RWAY Asset Management median
Debt to equity 0.88 0.00 0.40
Current ratio 1.57 0.00 1.23
Net debt to EBITDA (7.53) 4.42 1.06

Dividend

Metric PSBD RWAY Asset Management median
Dividend yield 10.92% 21.39% 6.43%
Payout ratio — 8.80 0.91

Size

Metric PSBD RWAY Asset Management median
Market cap 303.14m 256.49m 692.54m

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