Analyzing Oxford Lane Capital Corp. (OXLC) and Its Peers
Oxford Lane Capital Corp. (NASDAQ: OXLC) is one of 589 public companies in the “Closed End Funds” industry, but how does it weigh in compared to its peers? We will compare Oxford Lane Capital Corp. to similar companies based on the strength of its profitability, risk, institutional ownership, earnings, dividends, valuation and analyst recommendations.
This table compares Oxford Lane Capital Corp. and its peers’ 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%|
|Oxford Lane Capital Corp. Competitors||-35.43%||6.72%||5.20%|
Oxford Lane Capital Corp. pays an annual dividend of $1.60 per share and has a dividend yield of 15.6%. Oxford Lane Capital Corp. pays out 32.1% of its earnings in the form of a dividend. As a group, “Closed End Funds” companies pay a dividend yield of 8.5% and pay out 95.1% of their earnings in the form of a dividend. Oxford Lane Capital Corp. is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
This is a breakdown of current ratings and price targets for Oxford Lane Capital Corp. and its peers, 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|
|Oxford Lane Capital Corp. Competitors||231||1559||1907||31||2.47|
Oxford Lane Capital Corp. presently has a consensus target price of $11.00, indicating a potential upside of 7.00%. As a group, “Closed End Funds” companies have a potential upside of 88.34%. Given Oxford Lane Capital Corp.’s peers higher probable upside, analysts plainly believe Oxford Lane Capital Corp. has less favorable growth aspects than its peers.
Valuation & Earnings
This table compares Oxford Lane Capital Corp. and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Oxford Lane Capital Corp.||N/A||N/A||2.06|
|Oxford Lane Capital Corp. Competitors||$238.79 million||$43.51 million||144.41|
Oxford Lane Capital Corp.’s peers have higher revenue and earnings than Oxford Lane Capital Corp.. Oxford Lane Capital Corp. 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.
Volatility & Risk
Oxford Lane Capital Corp. has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Oxford Lane Capital Corp.’s peers have a beta of 0.56, meaning that their average share price is 44% less volatile than the S&P 500.
Insider & Institutional Ownership
24.0% of shares of all “Closed End Funds” companies are owned by institutional investors. 4.2% of shares of all “Closed End Funds” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Oxford Lane Capital Corp. beats its peers on 8 of the 13 factors compared.
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.
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