Oxford Square Capital (NASDAQ:OXSQ) and Source Capital (NASDAQ:SOR) Financial Comparison
Source Capital (NYSE:SOR) and Oxford Square Capital (NASDAQ:OXSQ) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
This table compares Source Capital and Oxford Square Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Oxford Square Capital||-182.92%||13.24%||8.20%|
This is a breakdown of current ratings and target prices for Source Capital and Oxford Square Capital, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Oxford Square Capital||0||0||0||0||N/A|
Insider & Institutional Ownership
21.8% of Source Capital shares are owned by institutional investors. Comparatively, 11.4% of Oxford Square Capital shares are owned by institutional investors. 77.0% of Source Capital shares are owned by insiders. Comparatively, 8.3% of Oxford Square Capital shares are owned 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.
Source Capital pays an annual dividend of $1.00 per share and has a dividend yield of 2.7%. Oxford Square Capital pays an annual dividend of $0.42 per share and has a dividend yield of 16.8%. Oxford Square Capital pays out 51.9% of its earnings in the form of a dividend. Source Capital has raised its dividend for 1 consecutive years and Oxford Square Capital has raised its dividend for 1 consecutive years.
Earnings and Valuation
This table compares Source Capital and Oxford Square Capital’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Oxford Square Capital||$62.65 million||1.98||-$32.80 million||$0.81||3.09|
Source Capital has higher earnings, but lower revenue than Oxford Square Capital.
Volatility and Risk
Source Capital has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Oxford Square Capital has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.
Oxford Square Capital beats Source Capital on 5 of the 9 factors compared between the two stocks.
About Source Capital
Source Capital, Inc. is a close-ended balanced fund launched and managed by First Pacific Advisors, LLC. The fund invests in the public equity markets of the United States. It seeks to invest in the stocks of companies operating across diversified sectors. The fund primarily invests in value stocks of small to mid cap companies. It employs fundamental analysis with a bottom-up stock selection approach, focusing on such factors as high liquidity, relatively unleveraged balance sheets, and long-term ability to earn above-average returns on capital to create its portfolio. The fund benchmarks the performance of its portfolio against the Russell 2500 Index, the S&P 500 Index, and the Nasdaq Composite Index. Source Capital, Inc. was formed in June 1, 1968 and is domiciled in the United States.
About Oxford Square Capital
Oxford Square Capital Corp. is a business development company, operates as a closed-end, non-diversified management investment company. It is a private equity and mezzanine firm. The firm invests in both public and private companies. It invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, common stock and syndicated bank loans. The firm primarily invests in debt and/or equity securities of technology-related companies that operate in the computer software, Internet, information technology infrastructure and services, media, telecommunications and telecommunications equipment, semiconductors, hardware, technology-enabled services, semiconductor capital equipment, medical device technology, diversified technology, and networking systems sectors. It concentrates its investments in companies having annual revenues of less than $200 million and a market capitalization or enterprise value of less than $300 million. The firm invests between $5 million and $30 million per transaction. It seeks to exit its investments within 7 years. It serves as the investment adviser to TICC. Oxford Square Capital Corp., formerly known as TICC Capital Corp., was founded in 2003 and is headquartered in Greenwich, Connecticut.
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