Burford Capital Limited (BUR) vs Oaktree Specialty Lending Corp. (OCSL)

Burford Capital Limited and Oaktree Specialty Lending Corp. are both Asset Management companies. Oaktree Specialty Lending Corp. is the larger, with a market value of $1.1B against $797.1M — 1.3× the size. Burford Capital Limited has negative trailing earnings, so its P/E is not meaningful; Oaktree Specialty Lending Corp. trades at 25.2×. Oaktree Specialty Lending Corp. grew revenue faster over the last twelve months: −12.6% against −331.0%. Burford Capital Limited has the higher net margin (112.0% vs 14.5%) and the lower return on invested capital (−29.9% vs 6.43%). Both pay a dividend; Oaktree Specialty Lending Corp. yields more (11.2% vs 0.88%). Across the 19 metrics below, Oaktree Specialty Lending Corp. leads on 13 and Burford Capital Limited on 6.

Valuation

Metric BUR OCSL Asset Management median
P/E n/m 25.21 14.62
P/S n/m 3.65 2.97
P/B 0.54 0.77 0.94
Price to free cash flow n/m 10.04 8.93
EV/EBITDA n/m 8.22 10.32
EV/Sales (1.63) 6.72 5.72
Earnings yield (211.81%) 3.97% 4.53%
Free cash flow yield (23.17%) 9.96% 4.65%

Profitability

Metric BUR OCSL Asset Management median
Gross margin 100.00% 82.16% 100.00%
Operating margin 99.23% 80.26% 33.03%
Net margin 111.95% 14.45% 13.53%
Free cash flow margin 12.27% 36.32% 12.44%
Return on equity (71.82%) 2.95% 4.83%
Return on assets (31.82%) 1.45% 1.57%
Return on invested capital (29.90%) 6.43% 3.04%

Growth

Metric BUR OCSL Asset Management median
Revenue growth (TTM) (330.95%) (12.55%) 6.97%
EPS growth (last fiscal year) (57.58%) (45.83%) —
Revenue growth, 5-year CAGR 2.85% 17.22% 12.13%
Net income growth, 5-year CAGR (17.64%) (2.86%) 0.00%

Health

Metric BUR OCSL Asset Management median
Debt to equity 1.64 0.68 0.42
Current ratio 9.56 0.19 1.28
Net debt to EBITDA 6.34 3.34 1.06

Dividend

Metric BUR OCSL Asset Management median
Dividend yield 0.88% 11.15% 6.92%
Payout ratio 0.10 1.75 0.77

Size

Metric BUR OCSL Asset Management median
Market cap 797.09m 1.06b 721.34m

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