Financial Contrast: Oxford Square Capital (NASDAQ:OXSQ) and Amalgamated Financial (NASDAQ:AMAL)

Oxford Square Capital (NASDAQ:OXSQ) and Amalgamated Financial (NASDAQ:AMAL) 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, earnings, profitability, institutional ownership, dividends and analyst recommendations.

Valuation and Earnings

This table compares Oxford Square Capital and Amalgamated Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oxford Square Capital	$42.68 million	3.35	$5.88 million	($0.02)	-91.50
Amalgamated Financial	$434.51 million	1.94	$106.43 million	$3.34	8.38

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

Analyst Ratings

This is a summary of current ratings for Oxford Square Capital and Amalgamated Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oxford Square Capital	0	0	0	0	0.00
Amalgamated Financial	1	0	1	0	2.00

Amalgamated Financial has a consensus price target of $33.00, indicating a potential upside of 17.86%. Given Amalgamated Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Amalgamated Financial is more favorable than Oxford Square Capital.

Dividends

Oxford Square Capital pays an annual dividend of $0.42 per share and has a dividend yield of 23.0%. Amalgamated Financial pays an annual dividend of $0.56 per share and has a dividend yield of 2.0%. Oxford Square Capital pays out -2,100.0% of its earnings in the form of a dividend. Amalgamated Financial pays out 16.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Amalgamated Financial has raised its dividend for 4 consecutive years. Oxford Square Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Oxford Square Capital	-3.35%	15.19%	8.11%
Amalgamated Financial	23.60%	15.21%	1.31%

Insider & Institutional Ownership

6.4% of Oxford Square Capital shares are owned by institutional investors. Comparatively, 75.9% of Amalgamated Financial shares are owned by institutional investors. 8.6% of Oxford Square Capital shares are owned by insiders. Comparatively, 1.3% of Amalgamated Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Oxford Square Capital has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Amalgamated Financial has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Summary

Amalgamated Financial beats Oxford Square Capital on 12 of the 17 factors compared between the two stocks.

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.

About Amalgamated Financial

Amalgamated Financial Corp. operates as the bank holding company for Amalgamated Bank that provides commercial and retail banking, investment management, and trust and custody services for commercial and retail customers in the United States. The company accepts various deposit products, including non-interest bearing accounts, interest-bearing demand products, savings accounts, money market accounts, NOW accounts, and certificates of deposit. It also provides various commercial loans comprising commercial and industrial, multifamily mortgage, and commercial real estate loans; residential mortgage loans; and retail loans, such as residential real estate, consumer solar, and consumer and other loans. In addition, the company offers online banking, bill payment, online cash management, and safe deposit box rental services; debit and ATM cards; and trust, custody, and investment management services comprising asset safekeeping, corporate actions, income collections, proxy, account transition, asset transfers, and conversion management services. Further, it provides investment products, such as funds spanning equity, fixed-income, real estate, and alternative investment products; and brokerage, asset management, and insurance products. Amalgamated Financial Corp. was founded in 1923 and is headquartered in New York, New York.