Prospect Capital Corporation (PSEC) vs Trinity Capital Inc. (TRIN)

Prospect Capital Corporation and Trinity Capital Inc. are both Asset Management companies. Trinity Capital Inc. is the larger, with a market value of $1.7B against $1.2B — 1.4× the size. Trinity Capital Inc. trades at the lower P/E: 10.1× against 43.8×. Trinity Capital Inc. grew revenue faster over the last twelve months: 25.7% against −11.1%. Trinity Capital Inc. has the higher net margin (44.5% vs 4.66%) and the higher return on invested capital (6.81% vs 3.23%). Both pay a dividend; Trinity Capital Inc. yields more (14.3% vs 12.4%). Across the 22 metrics below, Trinity Capital Inc. leads on 14 and Prospect Capital Corporation on 8.

Valuation

Metric PSEC TRIN Asset Management median
P/E 43.80 10.09 14.62
P/S 1.64 4.75 2.97
P/B 0.36 1.26 0.94
Price to free cash flow 2.04 n/m 8.93
EV/EBITDA 6.23 7.18 10.32
EV/Sales 4.49 5.67 5.72
Earnings yield 2.28% 9.91% 4.53%
Free cash flow yield 49.13% (37.20%) 4.65%

Profitability

Metric PSEC TRIN Asset Management median
Gross margin 75.38% 100.00% 100.00%
Operating margin 71.35% 77.39% 33.03%
Net margin 4.66% 44.50% 13.53%
Free cash flow margin 80.74% (176.44%) 12.44%
Return on equity 1.01% 13.66% 4.83%
Return on assets 0.45% 6.17% 1.57%
Return on invested capital 3.23% 6.81% 3.04%

Growth

Metric PSEC TRIN Asset Management median
Revenue growth (TTM) (11.12%) 25.65% 6.97%
EPS growth (last fiscal year) 104.44% (6.67%) —
Revenue growth, 5-year CAGR 0.24% 39.81% 12.13%
Net income growth, 5-year CAGR (50.08%) 0.00% 0.00%

Health

Metric PSEC TRIN Asset Management median
Debt to equity 0.41 0.22 0.42
Current ratio 0.87 0.05 1.28
Net debt to EBITDA 3.95 1.55 1.06

Dividend

Metric PSEC TRIN Asset Management median
Dividend yield 12.39% 14.34% 6.92%
Payout ratio 1.31 2.75 0.77

Size

Metric PSEC TRIN Asset Management median
Market cap 1.16b 1.66b 721.34m

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