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 $315.1M against $282.1M — 1.1× the size. Palmer Square Capital BDC Inc. has negative trailing earnings, so its P/E is not meaningful; Runway Growth Finance Corp. trades at 61.6×. Runway Growth Finance Corp. grew revenue faster over the last twelve months: −5.47% against −14.9%. Runway Growth Finance Corp. has the higher net margin (5.82% vs −26.7%) and the higher return on invested capital (2.96% vs 0.00%). Across the 18 metrics below, Palmer Square Capital BDC Inc. leads on 9 and Runway Growth Finance Corp. on 9.

Valuation

Metric PSBD RWAY Asset Management median
P/E n/m 61.64 14.62
P/S 2.65 2.14 2.97
P/B 0.75 0.57 0.94
Price to free cash flow 2.47 n/m 8.93
EV/EBITDA n/m 10.13 10.32
EV/Sales (3.62) 7.27 5.72
Earnings yield (10.07%) 1.62% 4.53%
Free cash flow yield 40.55% (26.42%) 4.65%

Profitability

Metric PSBD RWAY Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 83.05% 75.26% 33.03%
Net margin (26.72%) 5.82% 13.53%
Free cash flow margin 107.44% (56.56%) 12.44%
Return on equity (6.75%) 1.55% 4.83%
Return on assets (2.51%) 0.69% 1.57%
Return on invested capital 0.00% 2.96% 3.04%

Growth

Metric PSBD RWAY Asset Management median
Revenue growth (TTM) (14.85%) (5.47%) 6.97%
EPS growth (last fiscal year) (106.80%) (50.79%) —
Revenue growth, 5-year CAGR 37.33% 18.97% 12.13%
Net income growth, 5-year CAGR 0.00% (6.24%) 0.00%

Health

Metric PSBD RWAY Asset Management median
Debt to equity 0.97 1.38 0.42
Current ratio 1.56 0.93 1.28
Net debt to EBITDA (7.53) 4.42 1.06

Dividend

Metric PSBD RWAY Asset Management median
Dividend yield — 13.44% 6.92%
Payout ratio — 1.00 0.77

Size

Metric PSBD RWAY Asset Management median
Market cap 315.10m 282.05m 721.34m

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