Oaktree Specialty Lending Corp. (OCSL) vs Prospect Capital Corporation (PSEC)

Oaktree Specialty Lending Corp. and Prospect Capital Corporation are both Asset Management companies. Oaktree Specialty Lending Corp. is the larger, with a market value of $1.0B against $870.1M — 1.2× the size. Oaktree Specialty Lending Corp. trades at the lower P/E: 24.1× against 32.0×. Prospect Capital Corporation grew revenue faster over the last twelve months: −11.1% against −12.6%. Oaktree Specialty Lending Corp. has the higher net margin (14.5% vs 4.66%) and the higher return on invested capital (6.43% vs 3.23%). Both pay a dividend; Prospect Capital Corporation yields more (32.8% vs 12.1%). Across the 21 metrics below, Oaktree Specialty Lending Corp. leads on 11 and Prospect Capital Corporation on 10.

Valuation

Metric OCSL PSEC Asset Management median
P/E 24.10 32.00 13.99
P/S 3.49 1.20 2.76
P/B 0.74 0.26 0.85
Price to free cash flow 9.60 1.49 8.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 4.15% 3.13% 4.72%
Free cash flow yield 10.41% 67.25% 4.44%

Profitability

Metric OCSL PSEC Asset Management median
Gross margin 82.16% 75.38% 100.00%
Operating margin 80.26% 71.35% 33.42%
Net margin 14.45% 4.66% 13.37%
Free cash flow margin 36.32% 80.74% 12.36%
Return on equity 2.95% 1.01% 4.79%
Return on assets 1.45% 0.45% 1.55%
Return on invested capital 6.43% 3.23% 2.97%

Growth

Metric OCSL PSEC Asset Management median
Revenue growth (TTM) (12.55%) (11.12%) 7.42%
EPS growth (last fiscal year) (45.83%) 104.44% (6.67%)
Revenue growth, 5-year CAGR 17.22% 0.24% 12.51%
Net income growth, 5-year CAGR (2.86%) (50.08%) 0.00%

Health

Metric OCSL PSEC Asset Management median
Debt to equity 0.68 0.41 0.44
Current ratio 0.19 0.87 1.30
Net debt to EBITDA 3.34 3.95 1.02

Dividend

Metric OCSL PSEC Asset Management median
Dividend yield 12.10% 32.81% 6.60%
Payout ratio 2.92 10.50 0.94

Size

Metric OCSL PSEC Asset Management median
Market cap 1.04b 870.12m 694.86m

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