Oaktree Specialty Lending (NASDAQ:OCSL) and Mr. Amazing Loans (OTC:MRAL) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.
This table compares Oaktree Specialty Lending and Mr. Amazing Loans’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Oaktree Specialty Lending||73.31%||7.54%||4.15%|
|Mr. Amazing Loans||-275.59%||-86.04%||-84.01%|
This is a summary of recent ratings and price targets for Oaktree Specialty Lending and Mr. Amazing Loans, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Oaktree Specialty Lending||0||1||4||0||2.80|
|Mr. Amazing Loans||0||1||0||0||2.00|
Oaktree Specialty Lending currently has a consensus price target of $5.85, indicating a potential upside of 11.64%. Mr. Amazing Loans has a consensus price target of $0.31, indicating a potential upside of 210.00%. Given Mr. Amazing Loans’ higher possible upside, analysts clearly believe Mr. Amazing Loans is more favorable than Oaktree Specialty Lending.
Volatility and Risk
Oaktree Specialty Lending has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, Mr. Amazing Loans has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.
Insider & Institutional Ownership
43.8% of Oaktree Specialty Lending shares are owned by institutional investors. Comparatively, 0.5% of Mr. Amazing Loans shares are owned by institutional investors. 0.2% of Oaktree Specialty Lending shares are owned by company insiders. Comparatively, 39.5% of Mr. Amazing Loans shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Oaktree Specialty Lending and Mr. Amazing Loans’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Oaktree Specialty Lending||$138.72 million||5.32||$46.76 million||$0.43||12.19|
|Mr. Amazing Loans||$1.69 million||1.03||-$5.50 million||N/A||N/A|
Oaktree Specialty Lending has higher revenue and earnings than Mr. Amazing Loans.
Oaktree Specialty Lending pays an annual dividend of $0.38 per share and has a dividend yield of 7.3%. Mr. Amazing Loans does not pay a dividend. Oaktree Specialty Lending pays out 88.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Oaktree Specialty Lending beats Mr. Amazing Loans on 10 of the 14 factors compared between the two stocks.
Oaktree Specialty Lending Company Profile
Oaktree Specialty Lending Corporation is a business development company specializing in investments in middle market, bridge financing, first and second lien debt financing, mezzanine debt, senior and junior secured debt, expansions, sponsor-led acquisitions, and management buyouts in small and mid-sized companies. The fund seeks to invest in education services, business services, retail and consumer, healthcare, manufacturing, food and restaurants, construction and engineering, and media and advertising sectors. It invests between $5 million to $75 million principally in the form of one-stop, first lien, and second lien debt investments, which may include an equity co-investment component in companies with enterprise value between $20 million and $150 million and EBITDA between $3 million and $50 million. The fund has a hold size of up to $75 million and may underwrite transactions up to $100 million. It primarily invests in North America. The fund seeks to be a lead investor in its portfolio companies.
Mr. Amazing Loans Company Profile
Mr. Amazing Loans Corporation, a consumer finance company, provides unsecured online consumer loans to individuals in the United States. It offers loans for debt consolidation, medical expenses, home improvements, auto repairs, purchases, and discretionary spending. The company provides its loans to residents under the Mr. Amazing Loans brand name through its mramazingloans.com Website in 20 states, including Alabama, Arizona, California, Florida, Georgia, Illinois, Kentucky, Louisiana, Maryland, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon, Pennsylvania, Texas, Utah, Virginia, and Wisconsin. The company was formerly known as IEG Holdings Corporation. Mr. Amazing Loans Corporation was founded in 1999 and is headquartered in Las Vegas, Nevada.
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