Trinity Capital Inc. (TRIN) vs Sixth Street Specialty Lending, Inc. (TSLX)

Trinity Capital Inc. and Sixth Street Specialty Lending, Inc. are both Asset Management companies. Trinity Capital Inc. and Sixth Street Specialty Lending, Inc. are of similar size ($1.7B and $1.7B). Trinity Capital Inc. trades at the lower P/E: 10.1× against 19.1×. Trinity Capital Inc. grew revenue faster over the last twelve months: 25.7% against −13.8%. Trinity Capital Inc. has the higher net margin (44.5% vs 21.8%) and the higher return on invested capital (6.81% vs 3.54%). Both pay a dividend; Trinity Capital Inc. yields more (14.3% vs 8.60%). Across the 21 metrics below, Trinity Capital Inc. leads on 16 and Sixth Street Specialty Lending, Inc. on 5.

Valuation

Metric TRIN TSLX Asset Management median
P/E 10.09 19.09 14.62
P/S 4.75 4.22 2.97
P/B 1.26 1.11 0.94
Price to free cash flow n/m 16.66 8.93
EV/EBITDA 7.18 12.70 10.32
EV/Sales 5.67 9.17 5.72
Earnings yield 9.91% 5.24% 4.53%
Free cash flow yield (37.20%) 6.00% 4.65%

Profitability

Metric TRIN TSLX Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 77.39% 75.07% 33.03%
Net margin 44.50% 21.77% 13.53%
Free cash flow margin (176.44%) 25.30% 12.44%
Return on equity 13.66% 5.62% 4.83%
Return on assets 6.17% 2.56% 1.57%
Return on invested capital 6.81% 3.54% 3.04%

Growth

Metric TRIN TSLX Asset Management median
Revenue growth (TTM) 25.65% (13.78%) 6.97%
EPS growth (last fiscal year) (6.67%) (10.84%) —
Revenue growth, 5-year CAGR 39.81% 10.71% 12.13%
Net income growth, 5-year CAGR 0.00% (0.87%) 0.00%

Health

Metric TRIN TSLX Asset Management median
Debt to equity 0.22 1.24 0.42
Current ratio 0.05 9.83 1.28
Net debt to EBITDA 1.55 5.29 1.06

Dividend

Metric TRIN TSLX Asset Management median
Dividend yield 14.34% 8.60% 6.92%
Payout ratio 2.75 0.83 0.77

Size

Metric TRIN TSLX Asset Management median
Market cap 1.66b 1.73b 721.34m

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