Oaktree Specialty Lending (NASDAQ:OCSL – Get Free Report) and Sphere 3D (NASDAQ:ANY – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.
Profitability
This table compares Oaktree Specialty Lending and Sphere 3D’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Oaktree Specialty Lending | 13.84% | 10.94% | 5.23% |
| Sphere 3D | -131.43% | -47.27% | -41.94% |
Risk and Volatility
Oaktree Specialty Lending has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Sphere 3D has a beta of 3.22, meaning that its stock price is 222% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Oaktree Specialty Lending | 0 | 7 | 0 | 0 | 2.00 |
| Sphere 3D | 0 | 0 | 1 | 0 | 3.00 |
Oaktree Specialty Lending presently has a consensus target price of $15.00, indicating a potential upside of 11.19%. Sphere 3D has a consensus target price of $3.00, indicating a potential upside of 417.33%. Given Sphere 3D’s stronger consensus rating and higher probable upside, analysts plainly believe Sphere 3D is more favorable than Oaktree Specialty Lending.
Insider and Institutional Ownership
36.8% of Oaktree Specialty Lending shares are held by institutional investors. Comparatively, 17.3% of Sphere 3D shares are held by institutional investors. 0.3% of Oaktree Specialty Lending shares are held by company insiders. Comparatively, 3.6% of Sphere 3D shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Oaktree Specialty Lending and Sphere 3D”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 | $381.67 million | 3.11 | $57.90 million | $0.56 | 24.09 |
| Sphere 3D | $10.83 million | 1.52 | -$9.47 million | ($0.61) | -0.95 |
Oaktree Specialty Lending has higher revenue and earnings than Sphere 3D. Sphere 3D 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 Sphere 3D on 9 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 Sphere 3D
Sphere 3D Corp. engages in the bitcoin mining business. It is involved with digital asset mining pool operators to provide computing power to the mining pools. The company is based in Stamford, Connecticut.
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