Critical Survey: Affiliated Managers Group (NYSE:AMG) and OFS Credit (NASDAQ:OCCI)

OFS Credit (NASDAQ:OCCI) and Affiliated Managers Group (NYSE:AMG) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.

Volatility & Risk

OFS Credit has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Affiliated Managers Group has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Profitability

This table compares OFS Credit and Affiliated Managers Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OFS Credit	N/A	N/A	N/A
Affiliated Managers Group	26.01%	16.75%	7.97%

Valuation and Earnings

This table compares OFS Credit and Affiliated Managers Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OFS Credit	$32.55 million	2.43	$3.78 million	$0.24	20.96
Affiliated Managers Group	$2.04 billion	3.76	$511.60 million	$16.79	16.25

Affiliated Managers Group has higher revenue and earnings than OFS Credit. Affiliated Managers Group is trading at a lower price-to-earnings ratio than OFS Credit, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

23.8% of OFS Credit shares are held by institutional investors. Comparatively, 95.3% of Affiliated Managers Group shares are held by institutional investors. 1.0% of OFS Credit shares are held by insiders. Comparatively, 4.2% of Affiliated Managers Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

OFS Credit pays an annual dividend of $1.38 per share and has a dividend yield of 27.4%. Affiliated Managers Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. OFS Credit pays out 575.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Affiliated Managers Group pays out 0.2% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and target prices for OFS Credit and Affiliated Managers Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OFS Credit	0	0	0	0	0.00
Affiliated Managers Group	0	0	7	1	3.13

Affiliated Managers Group has a consensus target price of $290.33, suggesting a potential upside of 6.41%. Given Affiliated Managers Group’s stronger consensus rating and higher probable upside, analysts plainly believe Affiliated Managers Group is more favorable than OFS Credit.

Summary

Affiliated Managers Group beats OFS Credit on 15 of the 17 factors compared between the two stocks.

About OFS Credit

OFS Credit Company, Inc. is a fund of OFS Advisor.

About Affiliated Managers Group

Affiliated Managers Group, Inc., through its affiliates, operates as an investment management company providing investment management services to mutual funds, institutional clients,retails and high net worth individuals in the United States. It provides advisory or sub-advisory services to mutual funds. These funds are distributed to retail, high net worth and institutional clients directly and through intermediaries, including independent investment advisors, retirement plan sponsors, broker-dealers, major fund marketplaces, and bank trust departments. The company also offers investment products in various investment styles in the institutional distribution channel, including small, small/mid, mid, and large capitalization value and growth equity, and emerging markets. In addition, it offers quantitative, alternative, and fixed income products, and manages assets for foundations and endowments, defined benefit, and defined contribution plans for corporations and municipalities. Affiliated Managers Group provides investment management or customized investment counseling and fiduciary services. Affiliated Managers Group, Inc. was formed in 1993 and is based in West Palm Beach, Florida with additional offices in Prides Crossing, Massachusetts; Stamford, Connecticut; London, United Kingdom; Dubai, United Arab Emirates; Sydney, Australia; Hong Kong; Tokyo, Japan, Zurich, Switzerland and Delaware.