Stellus Capital Investment Corporation (SCM) vs Westwood Holdings Group Inc (WHG)

Stellus Capital Investment Corporation and Westwood Holdings Group Inc are both Asset Management companies. Stellus Capital Investment Corporation is the larger, with a market value of $219.3M against $180.4M — 1.2× the size. Stellus Capital Investment Corporation trades at the lower P/E: 7.5× against 20.5×. Westwood Holdings Group Inc grew revenue faster over the last twelve months: 6.30% against −5.52%. Stellus Capital Investment Corporation has the higher net margin (30.7% vs 7.73%) and the lower return on invested capital (2.12% vs 3.48%). Both pay a dividend; Stellus Capital Investment Corporation yields more (12.6% vs 5.07%). Across the 22 metrics below, Stellus Capital Investment Corporation leads on 13 and Westwood Holdings Group Inc on 9.

Valuation

Metric SCM WHG Asset Management median
P/E 7.50 20.46 14.62
P/S 2.27 1.62 2.97
P/B 0.60 1.29 0.94
Price to free cash flow 4.91 10.16 8.93
EV/EBITDA 11.57 14.45 10.32
EV/Sales 8.40 1.20 5.72
Earnings yield 13.33% 4.89% 4.53%
Free cash flow yield 20.37% 9.84% 4.65%

Profitability

Metric SCM WHG Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 70.04% 4.66% 33.03%
Net margin 30.66% 7.73% 13.53%
Free cash flow margin 46.33% 16.36% 12.44%
Return on equity 8.02% 6.29% 4.83%
Return on assets 2.95% 5.21% 1.57%
Return on invested capital 2.12% 3.48% 3.04%

Growth

Metric SCM WHG Asset Management median
Revenue growth (TTM) (5.52%) 6.30% 6.97%
EPS growth (last fiscal year) (46.93%) 203.85% —
Revenue growth, 5-year CAGR 12.51% 8.47% 12.13%
Net income growth, 5-year CAGR 6.02% 0.00% 0.00%

Health

Metric SCM WHG Asset Management median
Debt to equity 1.63 0.00 0.42
Current ratio 0.06 3.76 1.28
Net debt to EBITDA 8.41 (5.06) 1.06

Dividend

Metric SCM WHG Asset Management median
Dividend yield 12.56% 5.07% 6.92%
Payout ratio 1.68 3.75 0.77

Size

Metric SCM WHG Asset Management median
Market cap 219.30m 180.39m 721.34m

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