Ampal American Israel (OTCMKTS:AMPLQ) and OFS Capital (NASDAQ:OFS) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Profitability

This table compares Ampal American Israel and OFS Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ampal American Israel N/A N/A N/A
OFS Capital 16.74% 11.16% 4.34%

Volatility and Risk

Ampal American Israel has a beta of -10.74, meaning that its share price is 1,174% less volatile than the S&P 500. Comparatively, OFS Capital has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Insider and Institutional Ownership

20.0% of OFS Capital shares are owned by institutional investors. 63.4% of Ampal American Israel shares are owned by company insiders. Comparatively, 0.0% of OFS Capital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Ampal American Israel and OFS Capital, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ampal American Israel 0 0 0 0 N/A
OFS Capital 0 0 2 0 3.00

OFS Capital has a consensus target price of $13.50, suggesting a potential upside of 14.80%.

Earnings and Valuation

This table compares Ampal American Israel and OFS Capital’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ampal American Israel N/A N/A N/A N/A N/A
OFS Capital $42.83 million 3.67 $9.57 million $1.38 8.52

OFS Capital has higher revenue and earnings than Ampal American Israel.

Dividends

OFS Capital pays an annual dividend of $1.36 per share and has a dividend yield of 11.6%. Ampal American Israel does not pay a dividend. OFS Capital pays out 98.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

OFS Capital beats Ampal American Israel on 8 of the 10 factors compared between the two stocks.

About Ampal American Israel

Ampal-American Israel Corp. is engaged in acquiring interests of businesses in the state of israel of that are israel-related. The company investment principally focus on companies and ventures. It operates in five segments: chemical, energy, real estate rental, leisure-time and finance. The company was founded in 1942 and is headquartered in Herzliya, Israel.

About OFS Capital

OFS Capital Corporation is a business development company specializing in direct and fund investments as well as add-on acquisitions. It does not invest in operational turnarounds or start-up businesses. For direct, it specializes in debt and structured equity investments, recapitalizations and refinancing, management and leveraged buyouts, acquisition financings, shareholder liquidity events, growth capital, independent sponsor transactions, ESOPs, and minority investments in the lower middle market companies. It invests in the aerospace and defense, business services, consumer products and services, food and beverage, health care services, specialty chemicals, transportation and logistics, value added distribution, franchising, and industrial and niche manufacturing sectors. The firm invests in companies based in United States. It seeks to invest between $5 million and $20 million, revenues between $10 million and $200 million, Annual EBITDA more than $3 million, and Enterprise value between $10 million and $500 million. The firm seeks to invest in companies with debt investment values between $5 million and $25 million. The fund uses senior secured, unitranche loans, first-lien, second-lien, subordinated/ mezzanine loans, warrants, and preferred equity securities and common equity securities. It prefers to take a minority stake in the investments made. It also co-invests with its partners for additional capital.

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