Head to Head Analysis: OFS Capital (NASDAQ:OFS) and Advanced Medical Isotope (OTCMKTS:RDGL)

Advanced Medical Isotope (OTCMKTS:RDGL) and OFS Capital (NASDAQ:OFS) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Profitability

This table compares Advanced Medical Isotope and OFS Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advanced Medical Isotope	-6,144.90%	N/A	-113.56%
OFS Capital	7.52%	8.95%	3.41%

Institutional & Insider Ownership

10.8% of OFS Capital shares are owned by institutional investors. 18.5% of Advanced Medical Isotope shares are owned by insiders. Comparatively, 0.5% of OFS Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Advanced Medical Isotope and OFS Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advanced Medical Isotope	0	0	0	0	0.00
OFS Capital	1	1	0	0	1.50

OFS Capital has a consensus price target of $7.00, suggesting a potential upside of 39.72%. Given OFS Capital’s stronger consensus rating and higher probable upside, analysts clearly believe OFS Capital is more favorable than Advanced Medical Isotope.

Valuation & Earnings

This table compares Advanced Medical Isotope and OFS Capital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advanced Medical Isotope	$30,000.00	1,046.11	-$2.91 million	N/A	N/A
OFS Capital	$47.96 million	N/A	$28.44 million	$0.24	20.88

OFS Capital has higher revenue and earnings than Advanced Medical Isotope.

Volatility and Risk

Advanced Medical Isotope has a beta of -0.5, indicating that its share price is 150% less volatile than the S&P 500. Comparatively, OFS Capital has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Summary

OFS Capital beats Advanced Medical Isotope on 9 of the 10 factors compared between the two stocks.

About Advanced Medical Isotope

Vivos Inc., a radiation oncology medical device company, develops brachytherapy devices for the treatment of non-resectable tumors in the United States. It develops yttrium-90 based RadioGel device, an injectable particle-gel for brachytherapy radiation treatment of cancerous tumors in people and animals; and IsoPet for the treatment of solid tumors in animals. The company was formerly known as Advanced Medical Isotope Corporation and changed its name to Vivos Inc. in December 2017. Vivos Inc. was incorporated in 1994 and is headquartered in Richland, Washington.

About OFS Capital

OFS Capital Corporation is a business development company specializing in direct and fund investments as well as add-on acquisitions. It provides flexible capital solutions primarily through debt capital and to a lesser extent, minority equity investments serving the needs of U.S.-based middle-market companies across a broad array of industries. It does not invest in operational turnarounds or start-up businesses. For direct, it specializes in debt and structured equity investments, recapitalizations and refinancing, management and leveraged buyouts, acquisition financings, ownership transition, shareholder liquidity events, growth capital, independent sponsor transactions, ESOPs, and minority investments in the lower middle market companies. It invests in the aerospace and defense, business services, consumer products and services, construction & building, durable goods, capital equipment, automotive, food and beverage, healthcare & pharmaceutical, specialty chemicals, transportation cargo and logistics, value added distribution, franchising, and industrial and niche manufacturing sectors. The firm invests in companies based in United States. It seeks to invest between $3 million and $35 million, revenues between $15 million and $300 million, annual EBITDA between $5 million and $50 million, and Enterprise value between $10 million and $500 million. The firm seeks to invest in companies with debt investment values between $5 million and $25 million. The fund uses senior secured, unitranche loans, first-lien, second lien, subordinated/ mezzanine loans, warrants, and preferred equity securities and common equity securities. It prefers to take a minority as well as majority stake in the investments made. It also co-invests with its partners for additional capital.