Palmer Square Capital BDC Inc. (PSBD) vs Saratoga Investment Corp (SAR)

Palmer Square Capital BDC Inc. and Saratoga Investment Corp are both Asset Management companies. Palmer Square Capital BDC Inc. is the larger, with a market value of $315.1M against $278.7M — 1.1× the size. Palmer Square Capital BDC Inc. has negative trailing earnings, so its P/E is not meaningful; Saratoga Investment Corp trades at 17.1×. Saratoga Investment Corp grew revenue faster over the last twelve months: −12.9% against −14.9%. Saratoga Investment Corp has the higher net margin (12.7% vs −26.7%) and the higher return on invested capital (5.52% vs 0.00%). Across the 18 metrics below, Saratoga Investment Corp leads on 10 and Palmer Square Capital BDC Inc. on 8.

Valuation

Metric PSBD SAR Asset Management median
P/E n/m 17.11 14.62
P/S 2.65 2.24 2.97
P/B 0.75 0.73 0.94
Price to free cash flow 2.47 n/m 8.93
EV/EBITDA n/m 3.03 10.32
EV/Sales (3.62) 2.31 5.72
Earnings yield (10.07%) 5.84% 4.53%
Free cash flow yield 40.55% (52.60%) 4.65%

Profitability

Metric PSBD SAR Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 83.05% 68.26% 33.03%
Net margin (26.72%) 12.70% 13.53%
Free cash flow margin 107.44% (117.81%) 12.44%
Return on equity (6.75%) 4.07% 4.83%
Return on assets (2.51%) 1.31% 1.57%
Return on invested capital 0.00% 5.52% 3.04%

Growth

Metric PSBD SAR Asset Management median
Revenue growth (TTM) (14.85%) (12.86%) 6.97%
EPS growth (last fiscal year) (106.80%) 14.36% —
Revenue growth, 5-year CAGR 37.33% 8.36% 12.13%
Net income growth, 5-year CAGR 0.00% (4.36%) 0.00%

Health

Metric PSBD SAR Asset Management median
Debt to equity 0.97 0.19 0.42
Current ratio 1.56 0.09 1.28
Net debt to EBITDA (7.53) 0.50 1.06

Dividend

Metric PSBD SAR Asset Management median
Dividend yield — 12.27% 6.92%
Payout ratio — 1.13 0.77

Size

Metric PSBD SAR Asset Management median
Market cap 315.10m 278.68m 721.34m

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