Hamilton Lane (NASDAQ:HLNE – Get Free Report) and OFS Credit (NASDAQ:OCCI – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.
Analyst Recommendations
This is a summary of recent ratings and target prices for Hamilton Lane and OFS Credit, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hamilton Lane | 0 | 4 | 6 | 0 | 2.60 |
| OFS Credit | 0 | 0 | 0 | 0 | 0.00 |
Hamilton Lane currently has a consensus price target of $153.13, indicating a potential upside of 76.51%. Given Hamilton Lane’s stronger consensus rating and higher possible upside, research analysts clearly believe Hamilton Lane is more favorable than OFS Credit.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Hamilton Lane | 30.59% | 27.82% | 16.02% |
| OFS Credit | N/A | N/A | N/A |
Risk and Volatility
Hamilton Lane has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, OFS Credit has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.
Valuation and Earnings
This table compares Hamilton Lane and OFS Credit”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hamilton Lane | $712.96 million | 6.79 | $217.42 million | $5.57 | 15.57 |
| OFS Credit | $44.15 million | 2.24 | -$38.11 million | ($1.31) | -2.60 |
Hamilton Lane has higher revenue and earnings than OFS Credit. OFS Credit is trading at a lower price-to-earnings ratio than Hamilton Lane, indicating that it is currently the more affordable of the two stocks.
Dividends
Hamilton Lane pays an annual dividend of $2.16 per share and has a dividend yield of 2.5%. OFS Credit pays an annual dividend of $1.30 per share and has a dividend yield of 38.2%. Hamilton Lane pays out 38.8% of its earnings in the form of a dividend. OFS Credit pays out -99.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Hamilton Lane has raised its dividend for 8 consecutive years. OFS Credit is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
97.4% of Hamilton Lane shares are owned by institutional investors. Comparatively, 23.8% of OFS Credit shares are owned by institutional investors. 22.2% of Hamilton Lane shares are owned by insiders. Comparatively, 1.0% of OFS Credit shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Hamilton Lane beats OFS Credit on 15 of the 17 factors compared between the two stocks.
About Hamilton Lane
Hamilton Lane Incorporated is a private equity firm specializing in early venture, emerging growth, turnaround, middle market, mature, mid-venture, bridge, buyout, distressed/vulture, loan, mezzanine in growth capital companies. It prefers to invest in energy, industrials, consumer discretionary, health care, real estate, information technology, utilities, and consumer services. The firm prefers to invest in Africa/Middle East, Asia/Pacific, Europe, Latin America and Caribbean, United States of America, and Canada. The firm prefers to invest between $1 million and $100 million. It prefers to take majority stake. Hamilton Lane Incorporated was founded in 1991 and is based in Conshohocken, Pennsylvania with additional offices across Europe, North America, Asia Pacific and the Middle East.
About OFS Credit
OFS Credit Company, Inc. is a fund of OFS Advisor.
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