OFS Credit (NASDAQ:OCCI) versus Cannae (NYSE:CNNE) Head-To-Head Contrast

Cannae (NYSE:CNNE) and OFS Credit (NASDAQ:OCCI) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.

Dividends

Cannae pays an annual dividend of $0.60 per share and has a dividend yield of 3.2%. OFS Credit pays an annual dividend of $1.49 per share and has a dividend yield of 25.0%. Cannae pays out -9.0% of its earnings in the form of a dividend. OFS Credit pays out 876.5% 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

88.1% of Cannae shares are held by institutional investors. Comparatively, 23.8% of OFS Credit shares are held by institutional investors. 10.9% of Cannae shares are held by insiders. Comparatively, 1.0% of OFS Credit shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Cannae and OFS Credit”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cannae	$437.20 million	2.39	-$304.60 million	($6.70)	-2.79
OFS Credit	$3.80 million	24.74	$2.68 million	$0.17	35.12

OFS Credit has lower revenue, but higher earnings than Cannae. Cannae is trading at a lower price-to-earnings ratio than OFS Credit, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Cannae has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, OFS Credit has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Profitability

This table compares Cannae and OFS Credit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cannae	-94.12%	-18.19%	-14.58%
OFS Credit	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for Cannae and OFS Credit, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cannae	0	0	2	0	3.00
OFS Credit	0	0	0	0	0.00

Cannae presently has a consensus price target of $24.00, indicating a potential upside of 28.58%. Given Cannae’s stronger consensus rating and higher possible upside, equities analysts plainly believe Cannae is more favorable than OFS Credit.

About Cannae

Cannae Holdings, Inc. is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae Holdings, Inc. was founded in 2014 and is based in Las Vegas, Nevada.

About OFS Credit

OFS Credit Company, Inc. is a fund of OFS Advisor.