MidCap Financial Investment Corporation (MFIC) vs Oaktree Specialty Lending Corp. (OCSL)

MidCap Financial Investment Corporation 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 $846.0M — 1.3× the size. MidCap Financial Investment Corporation has negative trailing earnings, so its P/E is not meaningful; Oaktree Specialty Lending Corp. trades at 26.1×. Oaktree Specialty Lending Corp. grew revenue faster over the last twelve months: −12.6% against −13.6%. Oaktree Specialty Lending Corp. has the higher net margin (14.5% vs −26.2%) and the higher return on invested capital (6.43% vs 0.00%). Both pay a dividend; MidCap Financial Investment Corporation yields more (12.7% vs 11.2%). Across the 20 metrics below, Oaktree Specialty Lending Corp. leads on 13 and MidCap Financial Investment Corporation on 7.

Valuation

Metric MFIC OCSL Asset Management median
P/E n/m 26.10 13.38
P/S 3.02 3.78 2.99
P/B 0.80 0.80 0.91
Price to free cash flow 1.49 10.40 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (8.26%) 3.83% 4.67%
Free cash flow yield 66.98% 9.62% 4.85%

Profitability

Metric MFIC OCSL Asset Management median
Gross margin 100.00% 82.16% 100.00%
Operating margin 0.00% 80.26% 27.27%
Net margin (26.23%) 14.45% 11.89%
Free cash flow margin 202.48% 36.32% 5.96%
Return on equity (6.06%) 2.95% 4.57%
Return on assets (2.47%) 1.45% 1.40%
Return on invested capital 0.00% 6.43% 2.12%

Growth

Metric MFIC OCSL Asset Management median
Revenue growth (TTM) (13.64%) (12.55%) 7.26%
EPS growth (last fiscal year) (46.46%) (45.83%) (5.64%)
Revenue growth, 5-year CAGR 8.16% 17.22% 11.84%
Net income growth, 5-year CAGR (10.80%) (2.86%) 0.00%

Health

Metric MFIC OCSL Asset Management median
Debt to equity 1.49 0.68 0.40
Current ratio 3.78 0.19 1.23
Net debt to EBITDA 6.41 3.34 1.06

Dividend

Metric MFIC OCSL Asset Management median
Dividend yield 12.73% 11.17% 6.43%
Payout ratio — 2.92 0.91

Size

Metric MFIC OCSL Asset Management median
Market cap 845.97m 1.10b 692.54m

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