Fifth Street Senior Floating Rate Corp. (NASDAQ: OCSI) and StoneCastle Financial Corp (NASDAQ:BANX) are both small-cap financials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Dividends

Fifth Street Senior Floating Rate Corp. pays an annual dividend of $0.76 per share and has a dividend yield of 8.8%. StoneCastle Financial Corp pays an annual dividend of $1.52 per share and has a dividend yield of 7.4%.

Valuation and Earnings

This table compares Fifth Street Senior Floating Rate Corp. and StoneCastle Financial Corp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Fifth Street Senior Floating Rate Corp. $53.43 million 4.74 -$4.45 million N/A N/A
StoneCastle Financial Corp $17.03 million 7.87 $7.01 million N/A N/A

StoneCastle Financial Corp has higher revenue, but lower earnings than Fifth Street Senior Floating Rate Corp..

Insider & Institutional Ownership

16.1% of Fifth Street Senior Floating Rate Corp. shares are owned by institutional investors. Comparatively, 32.7% of StoneCastle Financial Corp shares are owned by institutional investors. 0.4% of Fifth Street Senior Floating Rate Corp. shares are owned by company insiders. Comparatively, 8.0% of StoneCastle Financial Corp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Fifth Street Senior Floating Rate Corp. and StoneCastle Financial Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fifth Street Senior Floating Rate Corp. 29.89% 7.27% 3.83%
StoneCastle Financial Corp 66.86% N/A N/A

Risk & Volatility

Fifth Street Senior Floating Rate Corp. has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500. Comparatively, StoneCastle Financial Corp has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Fifth Street Senior Floating Rate Corp. and StoneCastle Financial Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fifth Street Senior Floating Rate Corp. 0 2 0 0 2.00
StoneCastle Financial Corp 0 0 4 0 3.00

Fifth Street Senior Floating Rate Corp. currently has a consensus target price of $9.25, indicating a potential upside of 7.68%. StoneCastle Financial Corp has a consensus target price of $22.75, indicating a potential upside of 10.98%. Given StoneCastle Financial Corp’s stronger consensus rating and higher probable upside, analysts plainly believe StoneCastle Financial Corp is more favorable than Fifth Street Senior Floating Rate Corp..

Summary

StoneCastle Financial Corp beats Fifth Street Senior Floating Rate Corp. on 9 of the 14 factors compared between the two stocks.

Fifth Street Senior Floating Rate Corp. Company Profile

Oaktree Strategic Income Corporation, formerly Fifth Street Senior Floating Rate Corp., is a closed-end, non-diversified management investment company. The Company operates as a specialty finance company. The Company’s investment objective is to maximize its portfolio’s total return by generating current income from its debt investments while seeking to preserve its capital. The Company invests in senior secured loans, including first lien, unitranche and second lien debt instruments. The Company may also invest in unsecured loans, including subordinated loans, issued by private middle market companies, and senior and subordinated loans issued by public companies and equity investments. The senior loans that the Company targets have final maturities of 4 to 7 years. The Company seeks to invest in senior loans made primarily to private middle market companies. The Company‚Äôs investment advisor is Oaktree Capital Management, L.P.

StoneCastle Financial Corp Company Profile

StoneCastle Financial Corp. is a non-diversified, closed-end management investment company. The Company’s primary investment objective is to provide stockholders with current income, and to a lesser extent capital appreciation. The Company generally invests in the senior debt, subordinated debt, preferred shares and common stock of community banks. The Company’s investment portfolio includes term loans, debt securities, trust preferred securities, preferred shares of credit securitization, preferred securities, convertible preferred stock, common stock, exchange traded fund, limited partnership interest and money market fund. The Company invests in bank issuers of various locations, such as California, Colorado, Florida, Georgia, Illinois, Kansas, Maine, Maryland, New Jersey, New York, Ohio, North Carolina, Oklahoma, South Carolina, Texas and West Virginia.

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