Sixth Street Specialty Lending (NYSE:TSLX) and Biloxi Marsh Lands (OTCMKTS:BLMC) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.
Profitability
This table compares Sixth Street Specialty Lending and Biloxi Marsh Lands' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Sixth Street Specialty Lending | 59.17% | 13.52% | 6.95% |
| Biloxi Marsh Lands | -4,807.14% | N/A | N/A |
Volatility and Risk
Sixth Street Specialty Lending has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Biloxi Marsh Lands has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.
Institutional and Insider Ownership
55.7% of Sixth Street Specialty Lending shares are owned by institutional investors. 4.4% of Sixth Street Specialty Lending shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Dividends
Sixth Street Specialty Lending pays an annual dividend of $1.64 per share and has a dividend yield of 7.5%. Biloxi Marsh Lands pays an annual dividend of $0.10 per share and has a dividend yield of 2.9%. Sixth Street Specialty Lending pays out 84.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sixth Street Specialty Lending has increased its dividend for 1 consecutive years. Sixth Street Specialty Lending is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Sixth Street Specialty Lending and Biloxi Marsh Lands, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Sixth Street Specialty Lending | 0 | 0 | 7 | 0 | 3.00 |
| Biloxi Marsh Lands | 0 | 0 | 0 | 0 | N/A |
Sixth Street Specialty Lending presently has a consensus price target of $18.1429, suggesting a potential downside of 17.12%. Given Sixth Street Specialty Lending's higher possible upside, equities research analysts clearly believe Sixth Street Specialty Lending is more favorable than Biloxi Marsh Lands.
Valuation and Earnings
This table compares Sixth Street Specialty Lending and Biloxi Marsh Lands' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Sixth Street Specialty Lending | $251.49 million | 5.89 | $128.28 million | $1.94 | 11.25 |
| Biloxi Marsh Lands | $20,000.00 | 438.38 | $-3,030,000.00 | N/A | N/A |
Sixth Street Specialty Lending has higher revenue and earnings than Biloxi Marsh Lands.
Summary
Sixth Street Specialty Lending beats Biloxi Marsh Lands on 13 of the 15 factors compared between the two stocks.
