Oaktree Specialty Lending (NASDAQ:OCSL – Get Free Report) and AlTi Global (NASDAQ:ALTI – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.
Institutional & Insider Ownership
36.8% of Oaktree Specialty Lending shares are owned by institutional investors. Comparatively, 3.6% of AlTi Global shares are owned by institutional investors. 0.3% of Oaktree Specialty Lending shares are owned by insiders. Comparatively, 10.5% of AlTi Global shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings for Oaktree Specialty Lending and AlTi Global, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Oaktree Specialty Lending | 0 | 7 | 0 | 0 | 2.00 |
| AlTi Global | 1 | 0 | 0 | 0 | 1.00 |
Volatility and Risk
Oaktree Specialty Lending has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, AlTi Global has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.
Valuation & Earnings
This table compares Oaktree Specialty Lending and AlTi Global”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Oaktree Specialty Lending | $381.67 million | 3.19 | $57.90 million | $0.56 | 24.70 |
| AlTi Global | $206.93 million | 3.01 | -$103.03 million | ($1.80) | -2.36 |
Oaktree Specialty Lending has higher revenue and earnings than AlTi Global. AlTi Global is trading at a lower price-to-earnings ratio than Oaktree Specialty Lending, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Oaktree Specialty Lending and AlTi Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Oaktree Specialty Lending | 13.84% | 10.94% | 5.23% |
| AlTi Global | -66.10% | -0.32% | -0.17% |
Summary
Oaktree Specialty Lending beats AlTi Global on 11 of the 13 factors compared between the two stocks.
About Oaktree Specialty Lending
Oaktree Specialty Lending Corporation is a business development company. The fund specializing in investments in middle market, bridge financing, first and second lien debt financing, unsecured and mezzanine loan, mezzanine debt, senior and junior secured debt, expansions, sponsor-led acquisitions, preferred equity, and management buyouts in small and mid-sized companies. It seeks to invest in education services, business services, retail and consumer, healthcare, manufacturing, food and restaurants, construction and engineering. The firm also seeks investment in media, advertising sectors, software, IT services, pharmaceuticals, biotechnology, real estate management and development, chemicals, machinery, and internet and direct marketing retail sectors. It invests between $5 million to $75 million principally in the form of one-stop, first lien, and second lien debt investments, which may include an equity co-investment component in companies. The firm invest in companies having enterprise value between $20 million and $150 million and EBITDA between $3 million and $50 million. The fund has a hold size of up to $75 million and may underwrite transactions up to $100 million. It primarily invests in North America. The fund seeks to be a lead investor in its portfolio companies.
About AlTi Global
AlTi Global, Inc. provides wealth and asset management services individuals, families, foundations, and institutions in the United States, the United Kingdom, and internationally. It operates through two segments, Wealth Management and Strategic Alternatives. The company offers discretionary investment management, non-discretionary investment advisory, and investment management and advisory services. It also provides trust and administration services, such as entity formation and management; creating or modifying trust instruments and administrative practices to meet beneficiary needs; corporate, trustee-executor, and fiduciary services; provision of directors and company secretarial services; administering entity ownership of intellectual property rights; advisory and administration services in connection with investments in marine and aviation assets; and administering entity ownership of fine art and collectibles. In addition, the company offers family office services comprising bookkeeping and back office services, private foundation management and grant making, oversight of trust administration, financial tracking and reporting, cash flow management and bill pay, and other financial services, as well as clients estate and wealth planning, family governance and education, and philanthropic and strategic services. It also provides ancillary fund management services, including investments, financial planning and strategy, sales and marketing, and back and middle office infrastructure and administration. The company offers strategic advisory, corporate advisory, brokerage, and placement agency services; structures, arranges, and provides investors with co-investment opportunities in various alternative assets; manages and advises public and private investment funds, as well as alternatives platform. The company was formerly known as Alvarium Tiedemann Holdings, Inc. and changed its name to AlTi Global, Inc. in April 2023. The company is based in New York, New York.
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