Oaktree Specialty Lending Corp. (OCSL) vs Sixth Street Specialty Lending, Inc. (TSLX)

Oaktree Specialty Lending Corp. and Sixth Street Specialty Lending, Inc. are both Asset Management companies. Sixth Street Specialty Lending, Inc. is the larger, with a market value of $1.7B against $1.0B — 1.6× the size. Sixth Street Specialty Lending, Inc. trades at the lower P/E: 18.3× against 24.2×. Oaktree Specialty Lending Corp. grew revenue faster over the last twelve months: −12.6% against −13.8%. Sixth Street Specialty Lending, Inc. has the higher net margin (21.8% vs 14.5%) and the lower return on invested capital (3.54% vs 6.43%). Both pay a dividend; Oaktree Specialty Lending Corp. yields more (12.1% vs 10.4%). Across the 21 metrics below, Oaktree Specialty Lending Corp. leads on 12 and Sixth Street Specialty Lending, Inc. on 9.

Valuation

Metric OCSL TSLX Asset Management median
P/E 24.17 18.27 14.50
P/S 3.50 4.03 2.78
P/B 0.74 1.07 0.85
Price to free cash flow 9.63 15.94 8.49
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 4.14% 5.47% 4.66%
Free cash flow yield 10.39% 6.27% 4.18%

Profitability

Metric OCSL TSLX Asset Management median
Gross margin 82.16% 100.00% 100.00%
Operating margin 80.26% 75.07% 33.42%
Net margin 14.45% 21.77% 13.37%
Free cash flow margin 36.32% 25.30% 12.66%
Return on equity 2.95% 5.62% 4.82%
Return on assets 1.45% 2.56% 1.66%
Return on invested capital 6.43% 3.54% 3.00%

Growth

Metric OCSL TSLX Asset Management median
Revenue growth (TTM) (12.55%) (13.78%) 7.42%
EPS growth (last fiscal year) (45.83%) (10.84%) (6.67%)
Revenue growth, 5-year CAGR 17.22% 10.71% 12.51%
Net income growth, 5-year CAGR (2.86%) (0.87%) 0.00%

Health

Metric OCSL TSLX Asset Management median
Debt to equity 0.68 1.24 0.44
Current ratio 0.19 9.83 1.30
Net debt to EBITDA 3.34 5.29 1.02

Dividend

Metric OCSL TSLX Asset Management median
Dividend yield 12.07% 10.37% 6.56%
Payout ratio 2.92 1.89 0.94

Size

Metric OCSL TSLX Asset Management median
Market cap 1.04b 1.68b 700.96m

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