Ridgepost Capital, Inc. (RPC) vs Sixth Street Specialty Lending, Inc. (TSLX)

Ridgepost Capital, Inc. and Sixth Street Specialty Lending, Inc. are both Asset Management companies. Sixth Street Specialty Lending, Inc. is the larger, with a market value of $1.7B against $1.0B — 1.6× the size. Sixth Street Specialty Lending, Inc. trades at the lower P/E: 19.4× against 29.6×. Ridgepost Capital, Inc. grew revenue faster over the last twelve months: 8.16% against −14.2%. Sixth Street Specialty Lending, Inc. has the higher net margin (19.8% vs 10.8%) and the lower return on invested capital (3.26% vs 5.78%). Both pay a dividend; Sixth Street Specialty Lending, Inc. yields more (10.1% vs 1.60%). Across the 20 metrics below, Ridgepost Capital, Inc. leads on 12 and Sixth Street Specialty Lending, Inc. on 8.

Valuation

Metric RPC TSLX Asset Management median
P/E 29.64 19.43 13.38
P/S 3.29 4.26 2.99
P/B 2.08 1.10 0.91
Price to free cash flow 11.16 78.29 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 3.37% 5.15% 4.67%
Free cash flow yield 8.96% 1.28% 4.85%

Profitability

Metric RPC TSLX Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 27.22% 74.44% 27.27%
Net margin 10.79% 19.80% 11.89%
Free cash flow margin 29.48% 5.44% 5.96%
Return on equity 7.70% 4.98% 4.57%
Return on assets 3.38% 2.26% 1.40%
Return on invested capital 5.78% 3.26% 2.12%

Growth

Metric RPC TSLX Asset Management median
Revenue growth (TTM) 8.16% (14.22%) 7.26%
EPS growth (last fiscal year) 6.25% (10.84%) (5.64%)
Revenue growth, 5-year CAGR 34.57% 10.71% 11.84%
Net income growth, 5-year CAGR (3.32%) (0.87%) 0.00%

Health

Metric RPC TSLX Asset Management median
Debt to equity 0.92 1.21 0.40
Current ratio 2.71 3.43 1.23
Net debt to EBITDA 3.68 5.29 1.06

Dividend

Metric RPC TSLX Asset Management median
Dividend yield 1.60% 10.11% 6.43%
Payout ratio 0.49 1.96 0.91

Size

Metric RPC TSLX Asset Management median
Market cap 1.04b 1.70b 692.54m

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