Oaktree Specialty Lending (NASDAQ:OCSL – Get Free Report) and SoFi Technologies (NASDAQ:SOFI – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.
Profitability
This table compares Oaktree Specialty Lending and SoFi Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Oaktree Specialty Lending | 10.58% | 9.75% | 4.70% |
| SoFi Technologies | 13.34% | 5.88% | 1.10% |
Insider and Institutional Ownership
36.8% of Oaktree Specialty Lending shares are held by institutional investors. Comparatively, 38.4% of SoFi Technologies shares are held by institutional investors. 0.3% of Oaktree Specialty Lending shares are held by insiders. Comparatively, 2.6% of SoFi Technologies shares are held 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
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Oaktree Specialty Lending | 1 | 5 | 0 | 0 | 1.83 |
| SoFi Technologies | 3 | 9 | 7 | 0 | 2.21 |
Oaktree Specialty Lending presently has a consensus target price of $12.17, indicating a potential upside of 1.64%. SoFi Technologies has a consensus target price of $25.09, indicating a potential upside of 54.67%. Given SoFi Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe SoFi Technologies is more favorable than Oaktree Specialty Lending.
Risk and Volatility
Oaktree Specialty Lending has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, SoFi Technologies has a beta of 2.24, indicating that its share price is 124% more volatile than the S&P 500.
Valuation and Earnings
This table compares Oaktree Specialty Lending and SoFi Technologies”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 | $316.80 million | 3.33 | $33.92 million | $0.36 | 33.25 |
| SoFi Technologies | $3.61 billion | 5.72 | $481.32 million | $0.38 | 42.68 |
SoFi Technologies has higher revenue and earnings than Oaktree Specialty Lending. Oaktree Specialty Lending is trading at a lower price-to-earnings ratio than SoFi Technologies, indicating that it is currently the more affordable of the two stocks.
Summary
SoFi Technologies beats Oaktree Specialty Lending on 12 of the 14 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 SoFi Technologies
SoFi Technologies, Inc. provides various financial services in the United States, Latin America, and Canada. It operates through three segments: Lending, Technology Platform, and Financial Services. The company offers lending and financial services and products that allows its members to borrow, save, spend, invest, and protect money. It offers personal loans, student loans, home loans, and related services. The company also operates Galileo, a technology platform that offers services to financial and non-financial institution; and Technisys, a cloud-native digital and core banking platform with financial services customers. In addition, it provides SoFi Money offers checking and savings accounts, debit cards, and cash management products; and SoFi Invest, a mobile-first investment platform that provides access to trading and advisory solutions, such as investing and robo-advisory. Further, the company offers SoFi Credit Card that provides cash backs on every purchase; Sofi Relay, a personal finance management product that allows to track all of their financial accounts comprising credit score and spending behaviors; SoFi Protect, which offers insurance product; SoFi Travel, an application that manages travel search and booking experience; SoFi At Work provides financial benefits to employees, including student loan payments made on their employees' behalf; Lantern Credit, a financial services marketplace platform for seeking alternative products and provide product comparisons; and other lending as a service that offers pre-qualified borrower referrals and sells loans to third-party partner. The company was founded in 2011 and is based in San Francisco, California.
Receive News & Ratings for Oaktree Specialty Lending Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Oaktree Specialty Lending and related companies with MarketBeat.com's FREE daily email newsletter.
