Analyzing Saratoga Investment (SAR) and Oaktree Capital Group (OAK)
Saratoga Investment (NYSE:SAR) and Oaktree Capital Group (NYSE:OAK) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.
Insider & Institutional Ownership
14.3% of Saratoga Investment shares are held by institutional investors. Comparatively, 26.3% of Oaktree Capital Group shares are held by institutional investors. 24.8% of Saratoga Investment shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a breakdown of current ratings and price targets for Saratoga Investment and Oaktree Capital Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Oaktree Capital Group||0||5||1||0||2.17|
Saratoga Investment presently has a consensus price target of $23.83, suggesting a potential upside of 2.69%. Oaktree Capital Group has a consensus price target of $45.25, suggesting a potential upside of 8.64%. Given Oaktree Capital Group’s higher probable upside, analysts clearly believe Oaktree Capital Group is more favorable than Saratoga Investment.
Valuation and Earnings
This table compares Saratoga Investment and Oaktree Capital Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Saratoga Investment||$38.62 million||4.48||$17.67 million||$2.27||10.22|
|Oaktree Capital Group||$1.47 billion||4.45||$231.49 million||$3.97||10.49|
Oaktree Capital Group has higher revenue and earnings than Saratoga Investment. Saratoga Investment is trading at a lower price-to-earnings ratio than Oaktree Capital Group, indicating that it is currently the more affordable of the two stocks.
Saratoga Investment pays an annual dividend of $2.08 per share and has a dividend yield of 9.0%. Oaktree Capital Group pays an annual dividend of $2.20 per share and has a dividend yield of 5.3%. Saratoga Investment pays out 91.6% 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 Capital Group pays out 55.4% of its earnings in the form of a dividend. Saratoga Investment has raised its dividend for 2 consecutive years and Oaktree Capital Group has raised its dividend for 2 consecutive years.
Volatility and Risk
Saratoga Investment has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500. Comparatively, Oaktree Capital Group has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.
This table compares Saratoga Investment and Oaktree Capital Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Oaktree Capital Group||13.05%||9.38%||2.10%|
Saratoga Investment Company Profile
Saratoga Investment Corp. is a business development company specializing in leveraged and management buyouts, acquisition financings, growth financings, recapitalization, debt refinancing, and transitional financing transactions at the lower end of middle market companies. It structures its investments as debt and equity by investing through first and second lien loans, mezzanine debt, co-investments, select high yield bonds, senior secured bonds, unsecured bonds, and preferred and common equity. It seeks to invest in the United States. The firm primarily invests $5 million to $20 million in companies having EBITDA of $2 million or greater and revenues of $8 million to $150 million. It invests through direct lending as well as participation in loan syndicates. The firm was formerly known as GSC Investment Corp. Saratoga Investment Corp. is based in New York, New York with an additional office in Florham Park, New Jersey.
Oaktree Capital Group Company Profile
Oaktree Capital Group, LLC operates as a global investment management firm that focuses on alternative markets. It manage investments in a number of strategies within six asset classes, including distressed debt; corporate debt, including high yield debt and senior loans; control investing; convertible securities; real estate; and listed equities. The company pursues these strategies through closed-end, open-end, and evergreen funds. Oaktree Capital Group, LLC was incorporated on May 15, 2007 and is headquartered in Los Angeles, California.
Receive News & Ratings for Saratoga Investment Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Saratoga Investment and related companies with MarketBeat.com's FREE daily email newsletter.