Saratoga Investment Corp (SAR) vs Stellus Capital Investment Corporation (SCM)

Saratoga Investment Corp and Stellus Capital Investment Corporation are both Asset Management companies. Saratoga Investment Corp is the larger, with a market value of $278.7M against $219.3M — 1.3× the size. Stellus Capital Investment Corporation trades at the lower P/E: 7.5× against 17.1×. Stellus Capital Investment Corporation grew revenue faster over the last twelve months: −5.52% against −12.9%. Stellus Capital Investment Corporation has the higher net margin (30.7% vs 12.7%) and the lower return on invested capital (2.12% vs 5.52%). Both pay a dividend; Stellus Capital Investment Corporation yields more (12.6% vs 12.3%). Across the 21 metrics below, Stellus Capital Investment Corporation leads on 13 and Saratoga Investment Corp on 8.

Valuation

Metric SAR SCM Asset Management median
P/E 17.11 7.50 14.62
P/S 2.24 2.27 2.97
P/B 0.73 0.60 0.94
Price to free cash flow n/m 4.91 8.93
EV/EBITDA 3.03 11.57 10.32
EV/Sales 2.31 8.40 5.72
Earnings yield 5.84% 13.33% 4.53%
Free cash flow yield (52.60%) 20.37% 4.65%

Profitability

Metric SAR SCM Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 68.26% 70.04% 33.03%
Net margin 12.70% 30.66% 13.53%
Free cash flow margin (117.81%) 46.33% 12.44%
Return on equity 4.07% 8.02% 4.83%
Return on assets 1.31% 2.95% 1.57%
Return on invested capital 5.52% 2.12% 3.04%

Growth

Metric SAR SCM Asset Management median
Revenue growth (TTM) (12.86%) (5.52%) 6.97%
EPS growth (last fiscal year) 14.36% (46.93%) —
Revenue growth, 5-year CAGR 8.36% 12.51% 12.13%
Net income growth, 5-year CAGR (4.36%) 6.02% 0.00%

Health

Metric SAR SCM Asset Management median
Debt to equity 0.19 1.63 0.42
Current ratio 0.09 0.06 1.28
Net debt to EBITDA 0.50 8.41 1.06

Dividend

Metric SAR SCM Asset Management median
Dividend yield 12.27% 12.56% 6.92%
Payout ratio 1.13 1.68 0.77

Size

Metric SAR SCM Asset Management median
Market cap 278.68m 219.30m 721.34m

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