Critical Analysis: OFS Credit (NASDAQ:OCCI) & Schroders (OTCMKTS:SHNWF)

Schroders (OTCMKTS:SHNWF) and OFS Credit (NASDAQ:OCCI) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Schroders	N/A	N/A	N/A
OFS Credit	N/A	N/A	N/A

Valuation & Earnings

This table compares Schroders and OFS Credit”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schroders	$3.80 billion	2.34	$532.88 million	N/A	N/A
OFS Credit	$44.15 million	1.76	-$5.83 million	($0.37)	-13.30

Schroders has higher revenue and earnings than OFS Credit.

Insider & Institutional Ownership

23.8% of OFS Credit shares are held by institutional investors. 1.0% of OFS Credit shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Schroders and OFS Credit, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schroders	1	1	3	0	2.40
OFS Credit	0	0	0	0	0.00

Risk and Volatility

Schroders has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, OFS Credit has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Summary

Schroders beats OFS Credit on 6 of the 8 factors compared between the two stocks.

About Schroders

Schroders plc is a publicly owned investment manager. The firm also provides advisory and consultancy services. It provides its services to financial institutions, high net worth clients, large corporate, local authority, charitable entities, individuals, pension plans, government funds, insurance companies, and endowments. The firm launches and manages equity mutual funds and manages fixed income mutual funds for its clients. It also manages hedge for its clients. The firm invests in the public equity, fixed income, and alternative investment markets across the globe. The firm’s alternative investments include real estate markets, emerging market debt, commodities and agriculture funds, funds of hedge funds and private equity funds of funds. It conducts an in-house research to make its investments. The company was formerly known as New Schroders plc and changed its name to Schroders plc in April 2000. Schroders plc was founded on 1804 and is headquartered in London, United Kingdom.

About OFS Credit

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