Oaktree Specialty Lending (NASDAQ:OCSL – Get Free Report) and MGT Capital Investments (OTCMKTS:MGTI – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.
Volatility and Risk
Oaktree Specialty Lending has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, MGT Capital Investments has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500.
Earnings & Valuation
This table compares Oaktree Specialty Lending and MGT Capital Investments”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Oaktree Specialty Lending | $316.80 million | 3.33 | $33.92 million | $0.57 | 20.98 |
| MGT Capital Investments | $90,000.00 | 120.53 | -$220,000.00 | N/A | N/A |
Oaktree Specialty Lending has higher revenue and earnings than MGT Capital Investments.
Profitability
This table compares Oaktree Specialty Lending and MGT Capital Investments’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Oaktree Specialty Lending | 16.66% | 9.56% | 4.60% |
| MGT Capital Investments | N/A | N/A | -119.87% |
Insider and Institutional Ownership
36.8% of Oaktree Specialty Lending shares are owned by institutional investors. 0.3% of Oaktree Specialty Lending shares are owned by insiders. Comparatively, 0.0% of MGT Capital Investments 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.
Analyst Recommendations
This is a breakdown of recent ratings for Oaktree Specialty Lending and MGT Capital Investments, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Oaktree Specialty Lending | 0 | 5 | 0 | 0 | 2.00 |
| MGT Capital Investments | 0 | 0 | 0 | 0 | 0.00 |
Oaktree Specialty Lending currently has a consensus target price of $11.83, indicating a potential downside of 1.06%. Given Oaktree Specialty Lending’s stronger consensus rating and higher probable upside, equities analysts plainly believe Oaktree Specialty Lending is more favorable than MGT Capital Investments.
Summary
Oaktree Specialty Lending beats MGT Capital Investments on 9 of the 11 factors compared between the two stocks.
About Oaktree Specialty Lending
Oaktree Specialty Lending Corporation is a business development company. The fund specializing in investments in middle market, bridge financing, first and second lien debt financing, unsecured and mezzanine loan, mezzanine debt, senior and junior secured debt, expansions, sponsor-led acquisitions, preferred equity, and management buyouts in small and mid-sized companies. It seeks to invest in education services, business services, retail and consumer, healthcare, manufacturing, food and restaurants, construction and engineering. The firm also seeks investment in media, advertising sectors, software, IT services, pharmaceuticals, biotechnology, real estate management and development, chemicals, machinery, and internet and direct marketing retail sectors. It invests between $5 million to $75 million principally in the form of one-stop, first lien, and second lien debt investments, which may include an equity co-investment component in companies. The firm invest in companies having enterprise value between $20 million and $150 million and EBITDA between $3 million and $50 million. The fund has a hold size of up to $75 million and may underwrite transactions up to $100 million. It primarily invests in North America. The fund seeks to be a lead investor in its portfolio companies.
About MGT Capital Investments
MGT Capital Investments, Inc. engages in cryptocurrency mining business in the United States. The company owns and manages a bitcoin mining facility in LaFayette, Georgia. It also leases space to third parties and self-mining operations; and provides hosting services for third-party owners of miners. The company was incorporated in 1977 and is headquartered in Lafayette, Georgia.
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