OFS vs. SCM, PNNT, PTMN, LRFC, ICMB, TPVG, BANX, CIA, LFT, and UBFO
Should you be buying OFS Capital stock or one of its competitors? The main competitors of OFS Capital include Stellus Capital Investment (SCM), PennantPark Investment (PNNT), Portman Ridge Finance (PTMN), Logan Ridge Finance (LRFC), Investcorp Credit Management BDC (ICMB), TriplePoint Venture Growth BDC (TPVG), ArrowMark Financial (BANX), Citizens (CIA), Lument Finance Trust (LFT), and United Security Bancshares (UBFO). These companies are all part of the "finance" sector.
OFS Capital (NASDAQ:OFS) and Stellus Capital Investment (NYSE:SCM) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their community ranking, valuation, media sentiment, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.
OFS Capital has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, Stellus Capital Investment has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.
In the previous week, Stellus Capital Investment had 7 more articles in the media than OFS Capital. MarketBeat recorded 8 mentions for Stellus Capital Investment and 1 mentions for OFS Capital. OFS Capital's average media sentiment score of 1.72 beat Stellus Capital Investment's score of 0.70 indicating that OFS Capital is being referred to more favorably in the media.
Stellus Capital Investment received 75 more outperform votes than OFS Capital when rated by MarketBeat users. However, 59.64% of users gave OFS Capital an outperform vote while only 59.14% of users gave Stellus Capital Investment an outperform vote.
10.8% of OFS Capital shares are held by institutional investors. Comparatively, 13.2% of Stellus Capital Investment shares are held by institutional investors. 0.5% of OFS Capital shares are held by insiders. Comparatively, 4.7% of Stellus Capital Investment shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Stellus Capital Investment has a net margin of 24.08% compared to OFS Capital's net margin of -23.41%. Stellus Capital Investment's return on equity of 14.08% beat OFS Capital's return on equity.
OFS Capital pays an annual dividend of $1.36 per share and has a dividend yield of 13.6%. Stellus Capital Investment pays an annual dividend of $1.60 per share and has a dividend yield of 11.3%. OFS Capital pays out -137.4% of its earnings in the form of a dividend. Stellus Capital Investment pays out 148.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. OFS Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
Stellus Capital Investment has higher revenue and earnings than OFS Capital. OFS Capital is trading at a lower price-to-earnings ratio than Stellus Capital Investment, indicating that it is currently the more affordable of the two stocks.
Stellus Capital Investment has a consensus price target of $13.63, suggesting a potential downside of 3.71%. Given Stellus Capital Investment's higher probable upside, analysts clearly believe Stellus Capital Investment is more favorable than OFS Capital.
Summary
Stellus Capital Investment beats OFS Capital on 13 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding OFS and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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