Head-To-Head Contrast: Oaktree Specialty Lending (OCSL) versus OneMain (OMF)

Oaktree Specialty Lending (NASDAQ: OCSL) and OneMain (NYSE:OMF) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Earnings & Valuation

How to Become a New Pot Stock Millionaire

This table compares Oaktree Specialty Lending and OneMain’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oaktree Specialty Lending $177.96 million 3.44 -$196.96 million $0.51 8.51
OneMain $3.76 billion 1.07 $183.00 million $3.54 8.34

OneMain has higher revenue and earnings than Oaktree Specialty Lending. OneMain 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Oaktree Specialty Lending and OneMain, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oaktree Specialty Lending 0 4 3 0 2.43
OneMain 1 4 9 0 2.57

Oaktree Specialty Lending presently has a consensus target price of $5.42, suggesting a potential upside of 24.81%. OneMain has a consensus target price of $34.85, suggesting a potential upside of 18.04%. Given Oaktree Specialty Lending’s higher probable upside, research analysts plainly believe Oaktree Specialty Lending is more favorable than OneMain.

Profitability

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

Net Margins Return on Equity Return on Assets
Oaktree Specialty Lending -95.68% 6.74% 3.58%
OneMain 5.06% 15.04% 2.55%

Institutional & Insider Ownership

42.5% of Oaktree Specialty Lending shares are held by institutional investors. Comparatively, 94.3% of OneMain shares are held by institutional investors. 0.1% of Oaktree Specialty Lending shares are held by insiders. Comparatively, 57.7% of OneMain shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Oaktree Specialty Lending has a beta of 0.13, suggesting that its stock price is 87% less volatile than the S&P 500. Comparatively, OneMain has a beta of 2.75, suggesting that its stock price is 175% more volatile than the S&P 500.

Dividends

Oaktree Specialty Lending pays an annual dividend of $0.34 per share and has a dividend yield of 7.8%. OneMain does not pay a dividend. Oaktree Specialty Lending pays out 66.7% of its earnings in the form of a dividend.

Summary

OneMain beats Oaktree Specialty Lending on 11 of the 16 factors compared between the two stocks.

About Oaktree Specialty Lending

Oaktree Specialty Lending Corporation, formerly Fifth Street Finance Corp., is a specialty finance company. The Company is focused on providing customized one-stop credit solutions to companies with limited access to public or syndicated capital markets. The Company provides companies with flexible financing solutions including first and second lien loans, unsecured and mezzanine loans, and preferred equity. The company acts as a business development company. The Company serves various industries, including Internet software and services, healthcare services, multi-sector holdings, advertising, healthcare equipment, pharmaceuticals, construction and engineering, research and consulting services, and industrial machinery. The Company’s investment advisor is Oaktree Capital Management, L.P.

About OneMain

OneMain Holdings, Inc., through its subsidiaries, provides consumer finance and insurance products and services. The company operates in two segments: Consumer and Insurance, and Acquisitions and Servicing. It provides secured and unsecured personal loans; credit insurance products, such as life, disability, and involuntary unemployment insurance products; non-credit insurance; and auto membership plans, as well as retail sales finance services. The company also services and holds real estate loans secured by first or second mortgages on residential real estate. As of December 31, 2017, it operated through a network of 1,600 branches in 44 states in the United States, as well as through onemainfinancial.com Website. The company was formerly known as Springleaf Holdings, Inc. and changed its name to OneMain Holdings, Inc. in November 2015. OneMain Holdings, Inc. was founded in 1920 and is based in Evansville, Indiana.

Receive News & Ratings for Oaktree Specialty Lending Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Oaktree Specialty Lending and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply