Portman Ridge Finance (NASDAQ:PTMN) and Oaktree Strategic Income (NASDAQ:OCSI) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.
This table compares Portman Ridge Finance and Oaktree Strategic Income’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Portman Ridge Finance||-35.34%||5.81%||3.52%|
|Oaktree Strategic Income||21.10%||7.19%||3.48%|
This is a summary of current ratings and target prices for Portman Ridge Finance and Oaktree Strategic Income, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Portman Ridge Finance||0||0||0||0||N/A|
|Oaktree Strategic Income||0||0||0||0||N/A|
Portman Ridge Finance pays an annual dividend of $0.40 per share and has a dividend yield of 14.0%. Oaktree Strategic Income pays an annual dividend of $0.62 per share and has a dividend yield of 7.4%. Portman Ridge Finance pays out 148.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Oaktree Strategic Income pays out 92.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional & Insider Ownership
27.6% of Portman Ridge Finance shares are owned by institutional investors. Comparatively, 33.4% of Oaktree Strategic Income shares are owned by institutional investors. 8.1% of Portman Ridge Finance shares are owned by company insiders. Comparatively, 0.7% of Oaktree Strategic Income shares are owned by company 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.
Risk & Volatility
Portman Ridge Finance has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Oaktree Strategic Income has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.
Valuation and Earnings
This table compares Portman Ridge Finance and Oaktree Strategic Income’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Portman Ridge Finance||$27.09 million||3.93||-$9.57 million||$0.27||10.56|
|Oaktree Strategic Income||$47.67 million||5.19||$20.67 million||$0.67||12.54|
Oaktree Strategic Income has higher revenue and earnings than Portman Ridge Finance. Portman Ridge Finance is trading at a lower price-to-earnings ratio than Oaktree Strategic Income, indicating that it is currently the more affordable of the two stocks.
Oaktree Strategic Income beats Portman Ridge Finance on 9 of the 13 factors compared between the two stocks.
Portman Ridge Finance Company Profile
Portman Ridge Finance Corp. is a private equity fund and non-diversified closed-end investment company that invests in middle market companies generating consistent cash flows located in North America. It targets companies operating across a broad range of sectors such as aerospace and defense, automotive, beverage, food and tobacco, broadcasting and entertainment, buildings and real estate, personal and cargo transport, chemicals, plastics and rubber, containers, packaging and glass, diversified or conglomerate service, ecological, electronics, finance, and healthcare. The company was founded on August 8, 2006 and is headquartered in New York, NY.
Oaktree Strategic Income Company Profile
Fifth Street Senior Floating Rate Corp. is a business development company specializing in providing financing solutions in the form of floating rate senior secured loans to mid-sized companies.
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