OFS Capital (OFS) and Its Competitors Financial Survey
by Michael Walen · The Markets DailyOFS Capital (NASDAQ:OFS – Get Free Report) is one of 1,743 public companies in the “Capital Markets” industry, but how does it compare to its peers? We will compare OFS Capital to related companies based on the strength of its profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.
Risk and Volatility
OFS Capital has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, OFS Capital’s peers have a beta of 0.79, meaning that their average share price is 21% less volatile than the S&P 500.
Profitability
This table compares OFS Capital and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OFS Capital | -91.39% | 6.09% | 2.20% |
| OFS Capital Competitors | 317.76% | 10.36% | 3.68% |
Dividends
OFS Capital pays an annual dividend of $0.68 per share and has a dividend yield of 18.5%. OFS Capital pays out -32.2% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 29.2% of their earnings in the form of a dividend. OFS Capital has increased its dividend for 3 consecutive years. OFS Capital is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of current ratings and price targets for OFS Capital and its peers, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OFS Capital | 1 | 1 | 0 | 0 | 1.50 |
| OFS Capital Competitors | 5574 | 20179 | 22520 | 647 | 2.37 |
As a group, “Capital Markets” companies have a potential upside of 23.17%. Given OFS Capital’s peers stronger consensus rating and higher probable upside, analysts clearly believe OFS Capital has less favorable growth aspects than its peers.
Earnings & Valuation
This table compares OFS Capital and its peers revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| OFS Capital | $40.69 million | -$33.09 million | -1.74 |
| OFS Capital Competitors | $5.22 billion | $399.89 million | 17.15 |
OFS Capital’s peers have higher revenue and earnings than OFS Capital. OFS Capital is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Institutional & Insider Ownership
10.8% of OFS Capital shares are owned by institutional investors. Comparatively, 30.6% of shares of all “Capital Markets” companies are owned by institutional investors. 0.5% of OFS Capital shares are owned by company insiders. Comparatively, 12.9% of shares of all “Capital Markets” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
OFS Capital peers beat OFS Capital on 12 of the 15 factors compared.
OFS Capital Company Profile
OFS Capital Corporation (NASDAQ:OFS) is a business development company that provides financing to privately owned U.S. companies. The company primarily invests in lower middle-market businesses, which are generally companies that may have limited access to traditional bank financing or public capital markets. OFS Capital’s investment activities focus on providing secured loans, subordinated debt and, to a lesser extent, equity investments. Its financing may support acquisitions, recapitalizations, refinancing, growth initiatives and other corporate activities.