Oaktree Specialty Lending (NASDAQ:OCSL) and Ameriprise Financial (NYSE:AMP) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.
Dividends
Oaktree Specialty Lending pays an annual dividend of $0.44 per share and has a dividend yield of 7.2%. Ameriprise Financial pays an annual dividend of $4.16 per share and has a dividend yield of 1.9%. Oaktree Specialty Lending pays out 86.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ameriprise Financial pays out 25.8% of its earnings in the form of a dividend. Oaktree Specialty Lending has increased its dividend for 1 consecutive years and Ameriprise Financial has increased its dividend for 11 consecutive years.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Oaktree Specialty Lending and Ameriprise Financial, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Oaktree Specialty Lending | 0 | 0 | 5 | 0 | 3.00 |
Ameriprise Financial | 0 | 1 | 8 | 0 | 2.89 |
Oaktree Specialty Lending currently has a consensus target price of $5.20, suggesting a potential downside of 15.45%. Ameriprise Financial has a consensus target price of $202.10, suggesting a potential downside of 8.65%. Given Ameriprise Financial's higher possible upside, analysts plainly believe Ameriprise Financial is more favorable than Oaktree Specialty Lending.
Insider & Institutional Ownership
53.9% of Oaktree Specialty Lending shares are owned by institutional investors. Comparatively, 83.1% of Ameriprise Financial shares are owned by institutional investors. 0.2% of Oaktree Specialty Lending shares are owned by company insiders. Comparatively, 1.5% of Ameriprise Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Oaktree Specialty Lending has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Ameriprise Financial has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500.
Profitability
This table compares Oaktree Specialty Lending and Ameriprise Financial's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Oaktree Specialty Lending | 27.40% | 8.29% | 4.54% |
Ameriprise Financial | 15.16% | 33.79% | 1.38% |
Earnings & Valuation
This table compares Oaktree Specialty Lending and Ameriprise Financial's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Oaktree Specialty Lending | $143.13 million | 6.06 | $39.22 million | $0.51 | 12.06 |
Ameriprise Financial | $12.97 billion | 2.01 | $1.89 billion | $16.10 | 13.74 |
Ameriprise Financial has higher revenue and earnings than Oaktree Specialty Lending. Oaktree Specialty Lending is trading at a lower price-to-earnings ratio than Ameriprise Financial, indicating that it is currently the more affordable of the two stocks.
Summary
Ameriprise Financial beats Oaktree Specialty Lending on 11 of the 17 factors compared between the two stocks.