Analyzing OFS Capital Corporation (OFS) and Its Peers
OFS Capital Corporation (NASDAQ: OFS) is one of 586 public companies in the “Closed End Funds” industry, but how does it weigh in compared to its peers? We will compare OFS Capital Corporation to similar companies based on the strength of its profitability, risk, institutional ownership, earnings, dividends, valuation and analyst recommendations.
Valuation & Earnings
This table compares OFS Capital Corporation and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|OFS Capital Corporation||$31.09 million||$13.82 million||13.87|
|OFS Capital Corporation Competitors||$118.53 million||$49.80 million||97.77|
OFS Capital Corporation’s peers have higher revenue and earnings than OFS Capital Corporation. OFS Capital Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Insider & Institutional Ownership
28.6% of OFS Capital Corporation shares are owned by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are owned by institutional investors. 0.0% of OFS Capital Corporation shares are owned by company insiders. Comparatively, 3.5% of shares of all “Closed End Funds” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility & Risk
OFS Capital Corporation has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, OFS Capital Corporation’s peers have a beta of 0.55, meaning that their average share price is 45% less volatile than the S&P 500.
OFS Capital Corporation pays an annual dividend of $1.36 per share and has a dividend yield of 10.7%. OFS Capital Corporation pays out 147.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Closed End Funds” companies pay a dividend yield of 8.9% and pay out 88.3% of their earnings in the form of a dividend.
This is a breakdown of current ratings and price targets for OFS Capital Corporation and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|OFS Capital Corporation||1||1||3||0||2.40|
|OFS Capital Corporation Competitors||202||1230||1449||15||2.44|
OFS Capital Corporation presently has a consensus target price of $14.25, indicating a potential upside of 11.68%. As a group, “Closed End Funds” companies have a potential upside of 110.92%. Given OFS Capital Corporation’s peers stronger consensus rating and higher probable upside, analysts plainly believe OFS Capital Corporation has less favorable growth aspects than its peers.
This table compares OFS Capital Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|OFS Capital Corporation||31.02%||9.43%||4.69%|
|OFS Capital Corporation Competitors||-49.63%||6.82%||5.25%|
OFS Capital Corporation peers beat OFS Capital Corporation on 10 of the 15 factors compared.
OFS Capital Corporation Company Profile
OFS Capital Corporation (OFS Capital) is an externally managed, closed-end, non-diversified management investment company. The Company’s investment objective is to provide its shareholders with both current income and capital appreciation primarily through debt investments and equity investments. It focuses primarily on middle-market companies in the United States, including senior secured loans, including first-lien, second-lien and unitranche loans, as well as subordinated loans, and warrants and other minority equity securities. The Company may make investments directly or through OFS SBIC I, LP (SBIC I LP), its investment company subsidiary. It focuses on investments in loans, in which OFS Advisor’s investment professionals have expertise, including investments in first-lien, unitranche, second-lien, and mezzanine loans and, to a lesser extent, on warrants and other equity securities. The Company’s investment activities are managed by OFS Capital Management, LLC (OFS Advisor).
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