Head-To-Head Survey: Galaxy Digital (NASDAQ:GLXY) and Oaktree Specialty Lending (NASDAQ:OCSL)

Oaktree Specialty Lending (NASDAQ:OCSL) and Galaxy Digital (NASDAQ:GLXY) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Profitability

This table compares Oaktree Specialty Lending and Galaxy Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oaktree Specialty Lending	14.45%	9.70%	4.64%
Galaxy Digital	-0.75%	-6.25%	-1.67%

Volatility & Risk

Oaktree Specialty Lending has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Galaxy Digital has a beta of 5.11, indicating that its share price is 411% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Oaktree Specialty Lending and Galaxy Digital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oaktree Specialty Lending	1	5	0	0	1.83
Galaxy Digital	0	3	11	0	2.79

Oaktree Specialty Lending presently has a consensus target price of $11.83, suggesting a potential upside of 2.28%. Galaxy Digital has a consensus target price of $39.33, suggesting a potential upside of 143.70%. Given Galaxy Digital’s stronger consensus rating and higher possible upside, analysts plainly believe Galaxy Digital is more favorable than Oaktree Specialty Lending.

Insider and Institutional Ownership

36.8% of Oaktree Specialty Lending shares are held by institutional investors. 0.3% of Oaktree Specialty Lending shares are held by insiders. Comparatively, 51.5% of Galaxy Digital shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Oaktree Specialty Lending and Galaxy Digital”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	3.22	$33.92 million	$0.48	24.10
Galaxy Digital	$61.36 billion	0.10	-$241.35 million	($0.65)	-24.83

Oaktree Specialty Lending has higher earnings, but lower revenue than Galaxy Digital. Galaxy Digital is trading at a lower price-to-earnings ratio than Oaktree Specialty Lending, indicating that it is currently the more affordable of the two stocks.

Summary

Oaktree Specialty Lending beats Galaxy Digital on 8 of the 14 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 Galaxy Digital

Galaxy Digital Holdings Ltd. is a financial services and an investment management company, which engages in the digital asset, cryptocurrency, and block chain technology sectors. It operates through the following segments: Trading, Principal Investment, Asset Management, Investment Banking, Mining, and Corporate & Other. The Trading segment manages positions in cryptocurrency and other liquid digital assets contributed to the business at the outset and continues to invest and trade in those and related assets. The Principal Investment segment includes portfolio of private principal investments across the block chain ecosystem, including early- and later-stage equity, pre-launch network contributions, and other structured alternative investments. The Asset Management segment manages capital on behalf of third parties in exchange for management fees and performance-based compensation. The Investment Banking segment offers the spectrum of investment banking, including, but not limited to general corporate advisory, mergers and acquisition, transaction advisory, restructuring and capital rising. The Mining segment focuses to provide financial services for North American miners, through its partnerships. The Corporate & Other consists of the partnership’s unallocated corporate overhead and other unallocated costs not identifiable to any of the reportable segments. The company was founded by Michael Edward Novogratz on February 10, 2006 and is headquartered in New York, NY.