Saratoga Investment Corp (SAR) vs BLACKROCK TCP CAPITAL CORP. (TCPC)

Saratoga Investment 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 $278.7M — 1.2× the size. BLACKROCK TCP CAPITAL CORP. has negative trailing earnings, so its P/E is not meaningful; Saratoga Investment Corp trades at 17.1×. Saratoga Investment Corp grew revenue faster over the last twelve months: −12.9% against −26.1%. Saratoga Investment Corp has the higher net margin (12.7% vs −61.3%) and the higher return on invested capital (5.52% vs 4.15%). Both pay a dividend; Saratoga Investment Corp yields more (12.3% vs 11.9%). Across the 20 metrics below, Saratoga Investment Corp leads on 13 and BLACKROCK TCP CAPITAL CORP. on 7.

Valuation

Metric SAR TCPC Asset Management median
P/E 17.11 n/m 14.62
P/S 2.24 1.90 2.97
P/B 0.73 0.61 0.94
Price to free cash flow n/m 0.84 8.93
EV/EBITDA 3.03 9.32 10.32
EV/Sales 2.31 6.15 5.72
Earnings yield 5.84% (31.92%) 4.53%
Free cash flow yield (52.60%) 118.78% 4.65%

Profitability

Metric SAR TCPC Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 68.26% 84.51% 33.03%
Net margin 12.70% (61.27%) 13.53%
Free cash flow margin (117.81%) 225.77% 12.44%
Return on equity 4.07% (16.78%) 4.83%
Return on assets 1.31% (6.36%) 1.57%
Return on invested capital 5.52% 4.15% 3.04%

Growth

Metric SAR TCPC Asset Management median
Revenue growth (TTM) (12.86%) (26.09%) 6.97%
EPS growth (last fiscal year) 14.36% (32.91%) —
Revenue growth, 5-year CAGR 8.36% 3.23% 12.13%
Net income growth, 5-year CAGR (4.36%) 0.00% 0.00%

Health

Metric SAR TCPC Asset Management median
Debt to equity 0.19 1.65 0.42
Current ratio 0.09 29.31 1.28
Net debt to EBITDA 0.50 11.05 1.06

Dividend

Metric SAR TCPC Asset Management median
Dividend yield 12.27% 11.88% 6.92%
Payout ratio 1.13 4.27 0.77

Size

Metric SAR TCPC Asset Management median
Market cap 278.68m 335.61m 721.34m

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