Oaktree Strategic Income (NASDAQ:OCSI) and First Eagle Alternative Capital BDC (NASDAQ:FCRD) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Profitability
This table compares Oaktree Strategic Income and First Eagle Alternative Capital BDC's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Oaktree Strategic Income | -3.20% | 6.39% | 2.79% |
First Eagle Alternative Capital BDC | -161.21% | 6.50% | 3.31% |
Insider & Institutional Ownership
35.9% of Oaktree Strategic Income shares are held by institutional investors. Comparatively, 30.6% of First Eagle Alternative Capital BDC shares are held by institutional investors. 0.7% of Oaktree Strategic Income shares are held by insiders. Comparatively, 0.4% of First Eagle Alternative Capital BDC shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings for Oaktree Strategic Income and First Eagle Alternative Capital BDC, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Oaktree Strategic Income | 0 | 1 | 0 | 0 | 2.00 |
First Eagle Alternative Capital BDC | 0 | 3 | 0 | 0 | 2.00 |
Oaktree Strategic Income currently has a consensus price target of $7.00, indicating a potential downside of 15.87%. First Eagle Alternative Capital BDC has a consensus price target of $3.25, indicating a potential downside of 18.55%. Given Oaktree Strategic Income's higher probable upside, research analysts plainly believe Oaktree Strategic Income is more favorable than First Eagle Alternative Capital BDC.
Volatility and Risk
Oaktree Strategic Income has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, First Eagle Alternative Capital BDC has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500.
Dividends
Oaktree Strategic Income pays an annual dividend of $0.62 per share and has a dividend yield of 7.5%. First Eagle Alternative Capital BDC pays an annual dividend of $0.40 per share and has a dividend yield of 10.0%. Oaktree Strategic Income pays out 112.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Eagle Alternative Capital BDC pays out 46.0% of its earnings in the form of a dividend. Oaktree Strategic Income has increased its dividend for 1 consecutive years. First Eagle Alternative Capital BDC is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Oaktree Strategic Income and First Eagle Alternative Capital BDC's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Oaktree Strategic Income | $39.53 million | 6.20 | $-1,270,000.00 | $0.55 | 15.13 |
First Eagle Alternative Capital BDC | $52.49 million | 2.29 | $-24,610,000.00 | $0.87 | 4.59 |
Oaktree Strategic Income has higher earnings, but lower revenue than First Eagle Alternative Capital BDC. First Eagle Alternative Capital BDC is trading at a lower price-to-earnings ratio than Oaktree Strategic Income, indicating that it is currently the more affordable of the two stocks.
Summary
First Eagle Alternative Capital BDC beats Oaktree Strategic Income on 8 of the 15 factors compared between the two stocks.