NMFC vs CGBD

For growth investors, New Mountain Finance Corporation (NMFC) is the stronger pick with 12.

3% revenue growth year-over-year, versus -2. 9% for Carlyle Secured Lending, Inc. (CGBD). Carlyle Secured Lending, Inc. (CGBD) offers the better valuation at 7. 5x trailing P/E (8. 2x forward), making it the more compelling value choice. Analysts rate New Mountain Finance Corporation (NMFC) a "Hold" — based on 12 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Carlyle Secured Lending, Inc.

(CGBD) is the cheapest at 7. 5x versus New Mountain Finance Corporation at 60. 9x. On forward P/E, New Mountain Finance Corporation is actually cheaper at 7. 7x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Carlyle Secured Lending, Inc.

(CGBD) delivered a total return of +51. 3%, compared to +16. 4% for New Mountain Finance Corporation (NMFC). Over 10 years, the gap is even starker: NMFC returned +76. 4% versus CGBD's +48. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), New Mountain Finance Corporation (NMFC) is the lower-risk stock at 0.

59β versus Carlyle Secured Lending, Inc. 's 0. 61β — meaning CGBD is approximately 4% more volatile than NMFC relative to the S&P 500. On balance sheet safety, Carlyle Secured Lending, Inc. (CGBD) carries a lower debt/equity ratio of 107% versus 141% for New Mountain Finance Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), New Mountain Finance Corporation (NMFC) is pulling ahead at 12.

3% versus -2. 9% for Carlyle Secured Lending, Inc. (CGBD). On earnings-per-share growth, the picture is similar: Carlyle Secured Lending, Inc. grew EPS -3. 7% year-over-year, compared to -86. 4% for New Mountain Finance Corporation. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Carlyle Secured Lending, Inc.

(CGBD) is the more profitable company, earning 53. 0% net margin versus 4. 5% for New Mountain Finance Corporation — meaning it keeps 53. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CGBD leads at 54. 7% versus 38. 0% for NMFC. At the gross margin level — before operating expenses — NMFC leads at 83. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, New Mountain Finance Corporation (NMFC) trades at 7.

7x forward P/E versus 8. 2x for Carlyle Secured Lending, Inc. — 0. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CGBD: 26. 3% to $15. 00.

All stocks in this comparison pay dividends.

New Mountain Finance Corporation (NMFC) offers the highest yield at 13. 1%, versus 0. 2% for Carlyle Secured Lending, Inc. (CGBD).

For long-horizon retirement investors, New Mountain Finance Corporation (NMFC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

59), 13. 1% yield). Both have compounded well over 10 years (NMFC: +76. 4%, CGBD: +48. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: NMFC is a small-cap income-oriented stock; CGBD is a small-cap deep-value stock. NMFC pays a dividend while CGBD does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.