Runway Growth Finance Corp. (RWAY) vs Stellus Capital Investment Corporation (SCM)

Runway Growth Finance Corp. and Stellus Capital Investment Corporation are both Asset Management companies. Runway Growth Finance Corp. is the larger, with a market value of $282.1M against $219.3M — 1.3× the size. Stellus Capital Investment Corporation trades at the lower P/E: 7.5× against 61.6×. Runway Growth Finance Corp. grew revenue faster over the last twelve months: −5.47% against −5.52%. Stellus Capital Investment Corporation has the higher net margin (30.7% vs 5.82%) and the lower return on invested capital (2.12% vs 2.96%). Both pay a dividend; Runway Growth Finance Corp. yields more (13.4% vs 12.6%). Across the 21 metrics below, Runway Growth Finance Corp. leads on 12 and Stellus Capital Investment Corporation on 9.

Valuation

Metric RWAY SCM Asset Management median
P/E 61.64 7.50 14.62
P/S 2.14 2.27 2.97
P/B 0.57 0.60 0.94
Price to free cash flow n/m 4.91 8.93
EV/EBITDA 10.13 11.57 10.32
EV/Sales 7.27 8.40 5.72
Earnings yield 1.62% 13.33% 4.53%
Free cash flow yield (26.42%) 20.37% 4.65%

Profitability

Metric RWAY SCM Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 75.26% 70.04% 33.03%
Net margin 5.82% 30.66% 13.53%
Free cash flow margin (56.56%) 46.33% 12.44%
Return on equity 1.55% 8.02% 4.83%
Return on assets 0.69% 2.95% 1.57%
Return on invested capital 2.96% 2.12% 3.04%

Growth

Metric RWAY SCM Asset Management median
Revenue growth (TTM) (5.47%) (5.52%) 6.97%
EPS growth (last fiscal year) (50.79%) (46.93%) —
Revenue growth, 5-year CAGR 18.97% 12.51% 12.13%
Net income growth, 5-year CAGR (6.24%) 6.02% 0.00%

Health

Metric RWAY SCM Asset Management median
Debt to equity 1.38 1.63 0.42
Current ratio 0.93 0.06 1.28
Net debt to EBITDA 4.42 8.41 1.06

Dividend

Metric RWAY SCM Asset Management median
Dividend yield 13.44% 12.56% 6.92%
Payout ratio 1.00 1.68 0.77

Size

Metric RWAY SCM Asset Management median
Market cap 282.05m 219.30m 721.34m

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