Stellus Capital Investment Corporation (SCM) vs Sound Point Meridian Capital, Inc. (SPMC)

Stellus Capital Investment Corporation and Sound Point Meridian Capital, Inc. are both Asset Management companies. Stellus Capital Investment Corporation is the larger, with a market value of $219.3M against $179.0M — 1.2× the size. Sound Point Meridian Capital, Inc. has negative trailing earnings, so its P/E is not meaningful; Stellus Capital Investment Corporation trades at 7.5×. Across the 2 metrics below, Stellus Capital Investment Corporation leads on 2 and Sound Point Meridian Capital, Inc. on 0.

Valuation

Metric SCM SPMC Asset Management median
P/E 7.50 n/m 14.62
P/S 2.27 — 2.97
P/B 0.60 — 0.94
Price to free cash flow 4.91 — 8.93
EV/EBITDA 11.57 — 10.32
EV/Sales 8.40 — 5.72
Earnings yield 13.33% (68.08%) 4.53%
Free cash flow yield 20.37% — 4.65%

Profitability

Metric SCM SPMC Asset Management median
Gross margin 100.00% — 100.00%
Operating margin 70.04% — 33.03%
Net margin 30.66% — 13.53%
Free cash flow margin 46.33% — 12.44%
Return on equity 8.02% — 4.83%
Return on assets 2.95% 0.00% 1.57%
Return on invested capital 2.12% — 3.04%

Growth

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

Health

Metric SCM SPMC Asset Management median
Debt to equity 1.63 — 0.42
Current ratio 0.06 — 1.28
Net debt to EBITDA 8.41 — 1.06

Dividend

Metric SCM SPMC Asset Management median
Dividend yield 12.56% — 6.92%
Payout ratio 1.68 — 0.77

Size

Metric SCM SPMC Asset Management median
Market cap 219.30m 179.01m 721.34m

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