Full Circle Capital Corp (NASDAQ: FULL) and OFS Capital Corporation (NASDAQ:OFS) are both financials companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Dividends
OFS Capital Corporation pays an annual dividend of $1.36 per share and has a dividend yield of 10.3%. Full Circle Capital Corp does not pay a dividend. OFS Capital Corporation pays out 125.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility & Risk
Full Circle Capital Corp has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500. Comparatively, OFS Capital Corporation has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.
Insider & Institutional Ownership
25.6% of OFS Capital Corporation shares are owned by institutional investors. 0.0% of OFS Capital Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Full Circle Capital Corp and OFS Capital Corporation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Full Circle Capital Corp | -11.16% | -1.78% | -1.24% |
| OFS Capital Corporation | 31.02% | 9.43% | 4.69% |
Earnings & Valuation
This table compares Full Circle Capital Corp and OFS Capital Corporation’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Full Circle Capital Corp | N/A | N/A | N/A | N/A | N/A |
| OFS Capital Corporation | N/A | N/A | N/A | $1.08 | 12.28 |
Analyst Ratings
This is a breakdown of current ratings for Full Circle Capital Corp and OFS Capital Corporation, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Full Circle Capital Corp | 0 | 0 | 0 | 0 | N/A |
| OFS Capital Corporation | 1 | 1 | 3 | 0 | 2.40 |
OFS Capital Corporation has a consensus price target of $14.25, suggesting a potential upside of 7.47%. Given OFS Capital Corporation’s higher probable upside, analysts plainly believe OFS Capital Corporation is more favorable than Full Circle Capital Corp.
Summary
OFS Capital Corporation beats Full Circle Capital Corp on 9 of the 10 factors compared between the two stocks.
About Full Circle Capital Corp
Full Circle Capital Corporation is a non-diversified closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. The Company invests primarily in senior secured loans and second lien loans, mezzanine loans and equity securities issued by lower middle-market and middle-market companies that operate in a range of industries. In its lending activities, the Company focuses primarily on portfolio companies with both tangible and intangible assets available as collateral and security against its loan to help mitigate its risk of loss, and cash flow to cover debt service. The Company focuses primarily on senior secured loans and stretch senior secured loans (unitranche loans), which combine characteristics of first-lien senior secured loans and second-lien or subordinated loans. The Company’s investment advisor is Full Circle Advisors, LLC (Full Circle Advisors).
About OFS Capital Corporation
OFS Capital Corporation (OFS Capital) is an externally managed, closed-end, non-diversified management investment company. The Company’s investment objective is to provide its shareholders with both current income and capital appreciation primarily through debt investments and equity investments. It focuses primarily on middle-market companies in the United States, including senior secured loans, including first-lien, second-lien and unitranche loans, as well as subordinated loans, and warrants and other minority equity securities. The Company may make investments directly or through OFS SBIC I, LP (SBIC I LP), its investment company subsidiary. It focuses on investments in loans, in which OFS Advisor’s investment professionals have expertise, including investments in first-lien, unitranche, second-lien, and mezzanine loans and, to a lesser extent, on warrants and other equity securities. The Company’s investment activities are managed by OFS Capital Management, LLC (OFS Advisor).
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