Oxford Lane Capital (NASDAQ:OXLC) and FS KKR Capital (NYSE:FSK) are both companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.
Institutional & Insider Ownership
29.4% of FS KKR Capital shares are owned by institutional investors. 0.4% of FS KKR Capital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Oxford Lane Capital and FS KKR Capital’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Oxford Lane Capital||N/A||N/A||N/A||N/A||N/A|
|FS KKR Capital||$779.00 million||3.31||$246.00 million||$3.20||6.51|
FS KKR Capital has higher revenue and earnings than Oxford Lane Capital.
Oxford Lane Capital pays an annual dividend of $0.81 per share and has a dividend yield of 12.3%. FS KKR Capital pays an annual dividend of $2.40 per share and has a dividend yield of 11.5%. FS KKR Capital pays out 75.0% of its earnings in the form of a dividend. Oxford Lane Capital has increased its dividend for 1 consecutive years and FS KKR Capital has increased its dividend for 1 consecutive years.
This is a summary of recent recommendations for Oxford Lane Capital and FS KKR Capital, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Oxford Lane Capital||0||0||0||0||N/A|
|FS KKR Capital||2||5||2||0||2.00|
FS KKR Capital has a consensus price target of $16.88, indicating a potential downside of 18.99%. Given FS KKR Capital’s higher possible upside, analysts clearly believe FS KKR Capital is more favorable than Oxford Lane Capital.
This table compares Oxford Lane Capital and FS KKR Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Oxford Lane Capital||N/A||N/A||N/A|
|FS KKR Capital||-86.86%||11.18%||4.82%|
FS KKR Capital beats Oxford Lane Capital on 7 of the 10 factors compared between the two stocks.
About Oxford Lane Capital
Oxford Lane Capital Corp. is a close ended fund launched and managed by Oxford Lane Management LLC. It invests in fixed income securities. The fund primarily invests in securitization vehicles which in turn invest in senior secured loans made to companies whose debt is rated below investment grade or is unrated. Oxford Lane Capital Corp was formed on June 9, 2010 and is domiciled in the United States.
About FS KKR Capital
FS KKR Capital Corp. is a business development company specializing in investments in debt securities. It seeks to purchase interests in loans through secondary market transactions or directly from the target companies as primary market investments. It also seeks to invest in first lien senior secured loans, second lien secured loans and, to a lesser extent, subordinated loans, or mezzanine loans. In connection with the debt investments, the firm also receives equity interests such as warrants or options as additional consideration. It also seek to purchase minority interests in the form of common or preferred equity in our target companies, either in conjunction with one of the debt investments or through a co-investment with a financial sponsor. Additionally, on an opportunistic basis, the fund may also invest in corporate bonds and similar debt securities. The fund does not seek to invest in start-up companies, turnaround situations, or companies with speculative business plans. It seeks to invest in small and middle-market companies based in United States. The fund seeks to invest in firms with annual revenue between $10 million to $2.5 billion. It seeks to exit from securities by selling them in a privately negotiated over- the- counter market. For any investments that are not able to be sold within the secondary market, the firm seeks to exit such investments through repayment, an initial public offering of equity securities, merger, sale or recapitalization.
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