TriplePoint Venture Growth BDC (NYSE:TPVG) and Oxford Square Capital (NASDAQ:OXSQ) Head-To-Head Review

TriplePoint Venture Growth BDC (NYSE:TPVG) and Oxford Square Capital (NASDAQ:OXSQ) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for TriplePoint Venture Growth BDC and Oxford Square Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TriplePoint Venture Growth BDC	2	4	0	0	1.67
Oxford Square Capital	0	0	0	0	0.00

TriplePoint Venture Growth BDC currently has a consensus target price of $6.75, suggesting a potential upside of 8.35%. Given TriplePoint Venture Growth BDC’s stronger consensus rating and higher possible upside, research analysts clearly believe TriplePoint Venture Growth BDC is more favorable than Oxford Square Capital.

Profitability

This table compares TriplePoint Venture Growth BDC and Oxford Square Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TriplePoint Venture Growth BDC	42.16%	13.78%	6.32%
Oxford Square Capital	-3.35%	15.19%	8.11%

Risk & Volatility

TriplePoint Venture Growth BDC has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, Oxford Square Capital has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.

Dividends

TriplePoint Venture Growth BDC pays an annual dividend of $1.20 per share and has a dividend yield of 19.3%. Oxford Square Capital pays an annual dividend of $0.42 per share and has a dividend yield of 19.8%. TriplePoint Venture Growth BDC pays out 115.4% 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 -2,100.0% of its earnings in the form of a dividend. Oxford Square Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

12.8% of TriplePoint Venture Growth BDC shares are owned by institutional investors. Comparatively, 6.4% of Oxford Square Capital shares are owned by institutional investors. 1.5% of TriplePoint Venture Growth BDC shares are owned by company insiders. Comparatively, 8.6% of Oxford Square Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares TriplePoint Venture Growth BDC and Oxford Square Capital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TriplePoint Venture Growth BDC	$108.65 million	2.31	$32.05 million	$1.04	5.99
Oxford Square Capital	$42.68 million	3.88	$5.88 million	($0.02)	-106.00

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

Summary

TriplePoint Venture Growth BDC beats Oxford Square Capital on 9 of the 15 factors compared between the two stocks.

About TriplePoint Venture Growth BDC

TriplePoint Venture Growth BDC Corp. is a business development company specializing investments in venture capital-backed companies at the growth stage investments. It also provides debt financing to venture growth space companies which includes growth capital loans, secured and customized loans, equipment financings, revolving loans and direct equity investments. The fund seeks to invest in e-commerce, entertainment, technology and life sciences sector. Within technology the areas of focus include: Security, wireless communication equipments, network system and software, business applications software, conferencing equipments/services .big data, cloud computing, data storage, electronics, energy efficiency, hardware, information services, internet and media, networking, semiconductors, software, software as a service, and other technology related subsectors and within life sciences the areas of focus include: biotechnology, bio fuels/bio mass, diagnostic testing and bioinformatics, drug delivery, drug discovery, healthcare information systems, healthcare services, medical, surgical and therapeutic devices, pharmaceuticals and other life science related subsectors. Within growth capital loans it invests between $5 million and $50 million, for equipment financings it invests between $5 million and $25 million, for revolving loans it invests between $1 million and $25 million, and for direct equity investments it may invest between $0.1 million and $5 million (generally not exceeding 5% of the company’s total equity). The debt financing products are typically structured as lines of credit and it invests through warrants and secured loans. It targeted returns between 10% and 18%. It does not take board seat in the company.

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.