Stellus Capital Investment Corporation (SCM) vs WhiteHorse Finance, Inc. (WHF)

Stellus Capital Investment Corporation and WhiteHorse Finance, Inc. are both Asset Management companies. Stellus Capital Investment Corporation is the larger, with a market value of $205.6M against $164.5M — 1.2× the size. Stellus Capital Investment Corporation trades at the lower P/E: 6.9× against 9.6×. Stellus Capital Investment Corporation grew revenue faster over the last twelve months: −5.52% against −19.9%. Stellus Capital Investment Corporation has the higher net margin (30.7% vs 26.9%) and the lower return on invested capital (2.12% vs 2.67%). Both pay a dividend; Stellus Capital Investment Corporation yields more (18.8% vs 9.89%). Across the 20 metrics below, Stellus Capital Investment Corporation leads on 12 and WhiteHorse Finance, Inc. on 8.

Valuation

Metric SCM WHF Asset Management median
P/E 6.92 9.59 13.99
P/S 2.10 2.51 2.76
P/B 0.56 0.65 0.85
Price to free cash flow 4.53 2.10 8.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 14.45% 10.42% 4.72%
Free cash flow yield 22.07% 47.61% 4.44%

Profitability

Metric SCM WHF Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 70.04% 67.65% 33.42%
Net margin 30.66% 26.88% 13.37%
Free cash flow margin 46.33% 119.28% 12.36%
Return on equity 8.02% 6.65% 4.79%
Return on assets 2.95% 2.75% 1.55%
Return on invested capital 2.12% 2.67% 2.97%

Growth

Metric SCM WHF Asset Management median
Revenue growth (TTM) (5.52%) (19.92%) 7.42%
EPS growth (last fiscal year) (46.93%) 31.91% (6.67%)
Revenue growth, 5-year CAGR 12.51% 3.33% 12.51%
Net income growth, 5-year CAGR 6.02% (14.67%) 0.00%

Health

Metric SCM WHF Asset Management median
Debt to equity 1.63 1.29 0.44
Current ratio 0.06 1.39 1.30
Net debt to EBITDA 8.41 6.19 1.02

Dividend

Metric SCM WHF Asset Management median
Dividend yield 18.83% 9.89% 6.60%
Payout ratio 1.30 0.95 0.94

Size

Metric SCM WHF Asset Management median
Market cap 205.62m 164.51m 694.86m

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