Trinity Capital (NASDAQ:TRIN) vs. Oxford Square Capital (NASDAQ:OXSQ) Head-To-Head Analysis

Trinity Capital (NASDAQ:TRIN) and Oxford Square Capital (NASDAQ:OXSQ) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

Volatility & Risk

Trinity Capital has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Oxford Square Capital has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.

Insider and Institutional Ownership

24.6% of Trinity Capital shares are held by institutional investors. Comparatively, 6.4% of Oxford Square Capital shares are held by institutional investors. 5.3% of Trinity Capital shares are held by company insiders. Comparatively, 8.6% of Oxford Square Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Trinity Capital and Oxford Square Capital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trinity Capital	$293.65 million	5.20	$135.60 million	$1.89	8.99
Oxford Square Capital	$40.34 million	4.22	-$18.73 million	($0.43)	-4.23

Trinity Capital has higher revenue and earnings than Oxford Square Capital. Oxford Square Capital is trading at a lower price-to-earnings ratio than Trinity Capital, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Trinity Capital and Oxford Square Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trinity Capital	1	1	5	1	2.75
Oxford Square Capital	1	0	0	0	1.00

Trinity Capital currently has a consensus target price of $16.64, suggesting a potential downside of 2.04%. Given Trinity Capital’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Trinity Capital is more favorable than Oxford Square Capital.

Profitability

This table compares Trinity Capital and Oxford Square Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trinity Capital	43.45%	15.54%	6.91%
Oxford Square Capital	-92.37%	14.11%	7.02%

Dividends

Trinity Capital pays an annual dividend of $2.04 per share and has a dividend yield of 12.0%. Oxford Square Capital pays an annual dividend of $0.42 per share and has a dividend yield of 23.1%. Trinity Capital pays out 107.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Oxford Square Capital pays out -97.7% of its earnings in the form of a dividend. Trinity Capital has raised its dividend for 1 consecutive years. Oxford Square Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Trinity Capital beats Oxford Square Capital on 14 of the 18 factors compared between the two stocks.

About Trinity Capital

Trinity Capital Inc. is a business development company. It is a venture capital firm specializing in venture debt to growth stage companies looking for loans and/or equipment financing. Trinity Capital Inc. was founded in 2019 is based in Phoenix, Arizona with additional offices in the United States.

About Oxford Square Capital

Oxford Square Capital Corp. is a business development company, operates as a closed-end, non-diversified management investment company. It is a private equity and mezzanine firm. The firm invests in both public and private companies. It invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, common stock and syndicated bank loans. The firm primarily invests in debt and/or equity securities of technology-related companies that operate in the computer software, Internet, information technology infrastructure and services, media, telecommunications and telecommunications equipment, semiconductors, hardware, technology-enabled services, semiconductor capital equipment, medical device technology, diversified technology, and networking systems sectors. It concentrates its investments in companies having annual revenues of less than $200 million and a market capitalization or enterprise value of less than $300 million. The firm invests between $5 million and $30 million per transaction. It seeks to exit its investments within 7 years. It serves as the investment adviser to TICC. Oxford Square Capital Corp., formerly known as TICC Capital Corp., was founded in 2003 and is headquartered in Greenwich, Connecticut.