Runway Growth Finance Corp. (RWAY) vs BLACKROCK TCP CAPITAL CORP. (TCPC)

Runway Growth Finance Corp. and BLACKROCK TCP CAPITAL CORP. are both Asset Management companies. BLACKROCK TCP CAPITAL CORP. is the larger, with a market value of $335.6M against $282.1M — 1.2× the size. BLACKROCK TCP CAPITAL CORP. has negative trailing earnings, so its P/E is not meaningful; Runway Growth Finance Corp. trades at 61.6×. Runway Growth Finance Corp. grew revenue faster over the last twelve months: −5.47% against −26.1%. Runway Growth Finance Corp. has the higher net margin (5.82% vs −61.3%) and the lower return on invested capital (2.96% vs 4.15%). Both pay a dividend; Runway Growth Finance Corp. yields more (13.4% vs 11.9%). Across the 20 metrics below, Runway Growth Finance Corp. leads on 10 and BLACKROCK TCP CAPITAL CORP. on 10.

Valuation

Metric RWAY TCPC Asset Management median
P/E 61.64 n/m 14.62
P/S 2.14 1.90 2.97
P/B 0.57 0.61 0.94
Price to free cash flow n/m 0.84 8.93
EV/EBITDA 10.13 9.32 10.32
EV/Sales 7.27 6.15 5.72
Earnings yield 1.62% (31.92%) 4.53%
Free cash flow yield (26.42%) 118.78% 4.65%

Profitability

Metric RWAY TCPC Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 75.26% 84.51% 33.03%
Net margin 5.82% (61.27%) 13.53%
Free cash flow margin (56.56%) 225.77% 12.44%
Return on equity 1.55% (16.78%) 4.83%
Return on assets 0.69% (6.36%) 1.57%
Return on invested capital 2.96% 4.15% 3.04%

Growth

Metric RWAY TCPC Asset Management median
Revenue growth (TTM) (5.47%) (26.09%) 6.97%
EPS growth (last fiscal year) (50.79%) (32.91%) —
Revenue growth, 5-year CAGR 18.97% 3.23% 12.13%
Net income growth, 5-year CAGR (6.24%) 0.00% 0.00%

Health

Metric RWAY TCPC Asset Management median
Debt to equity 1.38 1.65 0.42
Current ratio 0.93 29.31 1.28
Net debt to EBITDA 4.42 11.05 1.06

Dividend

Metric RWAY TCPC Asset Management median
Dividend yield 13.44% 11.88% 6.92%
Payout ratio 1.00 4.27 0.77

Size

Metric RWAY TCPC Asset Management median
Market cap 282.05m 335.61m 721.34m

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