Oaktree Specialty Lending (OCSL) Competitors

Ares Capital (NASDAQ:ARCC) and Oaktree Specialty Lending (NASDAQ:OCSL) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, media sentiment, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Do institutionals & insiders hold more shares of ARCC or OCSL?

27.4% of Ares Capital shares are held by institutional investors. Comparatively, 36.8% of Oaktree Specialty Lending shares are held by institutional investors. 0.5% of Ares Capital shares are held by company insiders. Comparatively, 0.3% of Oaktree Specialty Lending shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Does the media favor ARCC or OCSL?

In the previous week, Ares Capital had 12 more articles in the media than Oaktree Specialty Lending. MarketBeat recorded 14 mentions for Ares Capital and 2 mentions for Oaktree Specialty Lending. Oaktree Specialty Lending's average media sentiment score of 1.44 beat Ares Capital's score of 1.21 indicating that Oaktree Specialty Lending is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Ares Capital	9 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Positive
Oaktree Specialty Lending	1 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is ARCC or OCSL more profitable?

Ares Capital has a net margin of 44.94% compared to Oaktree Specialty Lending's net margin of 13.84%. Oaktree Specialty Lending's return on equity of 10.94% beat Ares Capital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Ares Capital	44.94%	10.48%	5.00%
Oaktree Specialty Lending	13.84%	10.94%	5.23%

Which has more volatility and risk, ARCC or OCSL?

Ares Capital has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Oaktree Specialty Lending has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.

Which has better earnings and valuation, ARCC or OCSL?

Ares Capital has higher revenue and earnings than Oaktree Specialty Lending. Ares Capital is trading at a lower price-to-earnings ratio than Oaktree Specialty Lending, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ares Capital	$2.99B	4.70	$1.52B	$2.05	9.71
Oaktree Specialty Lending	$381.67M	3.20	$57.90M	$0.56	24.75

Do analysts rate ARCC or OCSL?

Ares Capital currently has a consensus target price of $22.63, suggesting a potential upside of 13.64%. Oaktree Specialty Lending has a consensus target price of $15.00, suggesting a potential upside of 8.23%. Given Ares Capital's stronger consensus rating and higher probable upside, analysts clearly believe Ares Capital is more favorable than Oaktree Specialty Lending.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ares Capital	0 Sell rating(s)	2 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.80
Oaktree Specialty Lending	0 Sell rating(s)	9 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00

Is ARCC or OCSL a better dividend stock?

Ares Capital pays an annual dividend of $1.92 per share and has a dividend yield of 9.6%. Oaktree Specialty Lending pays an annual dividend of $1.60 per share and has a dividend yield of 11.5%. Ares Capital pays out 93.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Oaktree Specialty Lending pays out 285.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Ares Capital beats Oaktree Specialty Lending on 12 of the 18 factors compared between the two stocks.