TriplePoint Venture Growth BDC (TPVG) and Oxford Lane Capital (OXLC) Financial Analysis

Oxford Lane Capital (NASDAQ: OXLC) and TriplePoint Venture Growth BDC (NYSE:TPVG) are both small-cap financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.

Dividends

Oxford Lane Capital pays an annual dividend of $1.60 per share and has a dividend yield of 15.5%. TriplePoint Venture Growth BDC pays an annual dividend of $1.44 per share and has a dividend yield of 10.9%. Oxford Lane Capital pays out 116.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TriplePoint Venture Growth BDC pays out 102.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Oxford Lane Capital and TriplePoint Venture Growth BDC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oxford Lane Capital 18.15% 5.38% 3.27%
TriplePoint Venture Growth BDC 43.72% 12.05% 5.99%

Valuation & Earnings

This table compares Oxford Lane Capital and TriplePoint Venture Growth BDC’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oxford Lane Capital N/A N/A N/A $1.37 7.55
TriplePoint Venture Growth BDC $43.63 million 5.37 $11.12 million $1.41 9.38

TriplePoint Venture Growth BDC has higher revenue and earnings than Oxford Lane Capital. Oxford Lane Capital is trading at a lower price-to-earnings ratio than TriplePoint Venture Growth BDC, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Oxford Lane Capital has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, TriplePoint Venture Growth BDC has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Oxford Lane Capital and TriplePoint Venture Growth BDC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oxford Lane Capital 0 0 1 0 3.00
TriplePoint Venture Growth BDC 0 1 1 0 2.50

Oxford Lane Capital presently has a consensus price target of $11.00, suggesting a potential upside of 6.38%. TriplePoint Venture Growth BDC has a consensus price target of $14.00, suggesting a potential upside of 5.82%. Given Oxford Lane Capital’s stronger consensus rating and higher possible upside, research analysts plainly believe Oxford Lane Capital is more favorable than TriplePoint Venture Growth BDC.

Institutional & Insider Ownership

33.8% of TriplePoint Venture Growth BDC shares are held by institutional investors. 1.3% of TriplePoint Venture Growth BDC shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

TriplePoint Venture Growth BDC beats Oxford Lane Capital on 10 of the 13 factors compared between the two stocks.

Oxford Lane Capital Company Profile

Oxford Lane Capital Corp. is a non-diversified closed-end management investment company. The Fund’s investment objective is to maximize its portfolio’s risk adjusted total return and seeks to achieve its investment objective by investing in structured finance investments, specifically collateralized loan obligation (CLO) vehicles, which primarily own senior corporate debt securities. The Fund holds debt investments in over three different CLO structures and equity investments in approximately 30 different CLO structures. Its investment strategy also includes investing in warehouse facilities, which are financing structures intended to aggregate loans that may be used to form the basis of a CLO vehicle. The Fund may also invest, on an opportunistic basis, in corporate debt securities on a direct basis and a range of other corporate credits. Oxford Lane Management, LLC (OXLC Management) is the investment advisor of the Fund.

TriplePoint Venture Growth BDC Company Profile

TriplePoint Venture Growth BDC Corp. is a closed-end, non-diversified management investment company. The Company’s investment objective is to maximize its total return to stockholders primarily in the form of current income and, to a lesser extent, capital appreciation by primarily lending with warrants to venture growth stage companies focused in technology, life sciences and other high growth industries, which are backed by TriplePoint Capital LLC’s (TPC) select group of venture capital investors. The Company targets investment opportunities in venture growth stage companies backed by venture capital investors. The Company originates and invests primarily in loans that have a secured collateral position and are used by venture growth stage companies to finance their continued expansion and growth, equipment financings and, on a select basis, revolving loans. The Company is managed by TPVG Advisers LLC.

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