Analyzing MCG Capital Corp (MCGC) & OFS Capital Corporation (OFS)

MCG Capital Corp (NASDAQ: MCGC) and OFS Capital Corporation (NASDAQ:OFS) are both financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for MCG Capital Corp and OFS Capital Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MCG Capital Corp 0 0 0 0 N/A
OFS Capital Corporation 1 1 3 0 2.40

OFS Capital Corporation has a consensus price target of $14.25, indicating a potential upside of 8.28%. Given OFS Capital Corporation’s higher possible upside, analysts plainly believe OFS Capital Corporation is more favorable than MCG Capital Corp.

Institutional and Insider Ownership

28.7% of OFS Capital Corporation shares are held by institutional investors. 0.0% of OFS Capital Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares MCG Capital Corp and OFS Capital Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MCG Capital Corp -9.19% -0.34% -0.33%
OFS Capital Corporation 31.02% 9.43% 4.69%

Earnings and Valuation

This table compares MCG Capital Corp and OFS Capital Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MCG Capital Corp N/A N/A N/A N/A N/A
OFS Capital Corporation N/A N/A N/A $1.08 12.19

Dividends

OFS Capital Corporation pays an annual dividend of $1.36 per share and has a dividend yield of 10.3%. MCG Capital Corp does not pay a dividend. OFS Capital Corporation pays out 125.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

OFS Capital Corporation beats MCG Capital Corp on 8 of the 9 factors compared between the two stocks.

About MCG Capital Corp

PFLT Funding II, LLC, formerly MCG Capital Corporation, is a United States-based company. The Company provides products and services.

About OFS Capital Corporation

OFS Capital Corporation (OFS Capital) is an externally managed, closed-end, non-diversified management investment company. The Company’s investment objective is to provide its shareholders with both current income and capital appreciation primarily through debt investments and equity investments. It focuses primarily on middle-market companies in the United States, including senior secured loans, including first-lien, second-lien and unitranche loans, as well as subordinated loans, and warrants and other minority equity securities. The Company may make investments directly or through OFS SBIC I, LP (SBIC I LP), its investment company subsidiary. It focuses on investments in loans, in which OFS Advisor’s investment professionals have expertise, including investments in first-lien, unitranche, second-lien, and mezzanine loans and, to a lesser extent, on warrants and other equity securities. The Company’s investment activities are managed by OFS Capital Management, LLC (OFS Advisor).

Receive News & Ratings for MCG Capital Corp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MCG Capital Corp and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply