Prospect Capital Corporation (PSEC) vs Virtus Investment Partners, Inc. (VRTS)

Prospect Capital Corporation and Virtus Investment Partners, Inc. are both Asset Management companies. Prospect Capital Corporation is the larger, with a market value of $1.2B against $859.8M — 1.3× the size. Virtus Investment Partners, Inc. trades at the lower P/E: 7.3× against 43.8×. Virtus Investment Partners, Inc. grew revenue faster over the last twelve months: −7.16% against −11.1%. Virtus Investment Partners, Inc. has the higher net margin (14.5% vs 4.66%) and the lower return on invested capital (0.00% vs 3.23%). Both pay a dividend; Prospect Capital Corporation yields more (12.4% vs 3.41%). Across the 21 metrics below, Virtus Investment Partners, Inc. leads on 13 and Prospect Capital Corporation on 8.

Valuation

Metric PSEC VRTS Asset Management median
P/E 43.80 7.32 14.62
P/S 1.64 1.06 2.97
P/B 0.36 0.92 0.94
Price to free cash flow 2.04 n/m 8.93
EV/EBITDA 6.23 n/m 10.32
EV/Sales 4.49 (1.78) 5.72
Earnings yield 2.28% 13.66% 4.53%
Free cash flow yield 49.13% (5.96%) 4.65%

Profitability

Metric PSEC VRTS Asset Management median
Gross margin 75.38% 100.00% 100.00%
Operating margin 71.35% 15.71% 33.03%
Net margin 4.66% 14.52% 13.53%
Free cash flow margin 80.74% (6.29%) 12.44%
Return on equity 1.01% 12.99% 4.83%
Return on assets 0.45% 2.91% 1.57%
Return on invested capital 3.23% 0.00% 3.04%

Growth

Metric PSEC VRTS Asset Management median
Revenue growth (TTM) (11.12%) (7.16%) 6.97%
EPS growth (last fiscal year) 104.44% 18.24% —
Revenue growth, 5-year CAGR 0.24% 7.15% 12.13%
Net income growth, 5-year CAGR (50.08%) 11.60% 0.00%

Health

Metric PSEC VRTS Asset Management median
Debt to equity 0.41 0.44 0.42
Current ratio 0.87 10.54 1.28
Net debt to EBITDA 3.95 (12.38) 1.06

Dividend

Metric PSEC VRTS Asset Management median
Dividend yield 12.39% 3.41% 6.92%
Payout ratio 1.31 0.35 0.77

Size

Metric PSEC VRTS Asset Management median
Market cap 1.16b 859.76m 721.34m

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