Oxford Lane Capital Corp (NASDAQ: OXLC) and Apollo Investment Corporation (NASDAQ:AINV) are both financials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Profitability

This table compares Oxford Lane Capital Corp and Apollo Investment Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oxford Lane Capital Corp 89.48% 26.64% 16.20%
Apollo Investment Corporation 33.04% 9.75% 5.75%

Valuation & Earnings

This table compares Oxford Lane Capital Corp and Apollo Investment Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Oxford Lane Capital Corp N/A N/A N/A N/A N/A
Apollo Investment Corporation N/A N/A N/A $0.40 15.00

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Oxford Lane Capital Corp and Apollo Investment Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oxford Lane Capital Corp 0 0 1 0 3.00
Apollo Investment Corporation 1 4 1 0 2.00

Oxford Lane Capital Corp currently has a consensus price target of $10.25, indicating a potential downside of 4.21%. Apollo Investment Corporation has a consensus price target of $6.25, indicating a potential upside of 4.17%. Given Apollo Investment Corporation’s higher probable upside, analysts plainly believe Apollo Investment Corporation is more favorable than Oxford Lane Capital Corp.

Institutional & Insider Ownership

45.8% of Apollo Investment Corporation shares are held by institutional investors. 0.3% of Apollo Investment Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Apollo Investment Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 10.0%. Oxford Lane Capital Corp does not pay a dividend. Apollo Investment Corporation pays out 150.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Oxford Lane Capital Corp beats Apollo Investment Corporation on 5 of the 9 factors compared between the two stocks.

Oxford Lane Capital Corp Company Profile

Oxford Lane Capital Corp. is a non-diversified closed-end management investment company. The Fund’s investment objective is to maximize its portfolio’s risk adjusted total return and seeks to achieve its investment objective by investing in structured finance investments, specifically collateralized loan obligation (CLO) vehicles, which primarily own senior corporate debt securities. The Fund holds debt investments in over three different CLO structures and equity investments in approximately 30 different CLO structures. Its investment strategy also includes investing in warehouse facilities, which are financing structures intended to aggregate loans that may be used to form the basis of a CLO vehicle. The Fund may also invest, on an opportunistic basis, in corporate debt securities on a direct basis and a range of other corporate credits. Oxford Lane Management, LLC (OXLC Management) is the investment advisor of the Fund.

Apollo Investment Corporation Company Profile

Apollo Investment Corporation is a closed-end, externally managed, non-diversified management investment company. The Company’s investment objective is to generate current income and capital appreciation. It invests primarily in various forms of debt investments, including secured and unsecured debt, loan investments and/or equity in private middle-market companies. It may also invest in the securities of public companies and in structured products and other investments, such as collateralized loan obligations (CLOs) and credit-linked notes (CLNs). Its portfolio also includes equity interests, such as common stock, preferred stock, warrants or options. It invests in investments in the United States secured and unsecured loans, other debt securities and equity, and may also invests a portion of the portfolio in other investment opportunities, including foreign securities and structured products. Apollo Investment Management, L.P. is the investment advisor of the Company.

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