OFS Capital Corporation (OFS) vs Royalty Management Holding Corporation (RMCO)

OFS Capital Corporation and Royalty Management Holding Corporation are both Asset Management companies. OFS Capital Corporation is the larger, with a market value of $48.0M against $39.2M — 1.2× the size. Royalty Management Holding Corporation grew revenue faster over the last twelve months: 133.5% against −17.7%. Royalty Management Holding Corporation has the higher net margin (−14.5% vs −62.2%) and the lower return on invested capital (−1.41% vs 4.36%). Across the 17 metrics below, OFS Capital Corporation leads on 9 and Royalty Management Holding Corporation on 8.

Valuation

Metric OFS RMCO Asset Management median
P/E n/m n/m 14.62
P/S 1.35 6.42 2.97
P/B 0.43 3.56 0.94
Price to free cash flow 0.75 n/m 8.93
EV/EBITDA 4.75 n/m 10.32
EV/Sales 2.27 6.40 5.72
Earnings yield (45.96%) (2.45%) 4.53%
Free cash flow yield 134.21% (1.00%) 4.65%

Profitability

Metric OFS RMCO Asset Management median
Gross margin 100.00% 11.15% 100.00%
Operating margin 74.55% (5.05%) 33.03%
Net margin (62.24%) (14.52%) 13.53%
Free cash flow margin 181.02% (6.42%) 12.44%
Return on equity (17.15%) (7.81%) 4.83%
Return on assets (6.34%) (5.32%) 1.57%
Return on invested capital 4.36% (1.41%) 3.04%

Growth

Metric OFS RMCO Asset Management median
Revenue growth (TTM) (17.71%) 133.52% 6.97%
EPS growth (last fiscal year) (216.51%) (557.89%) —
Revenue growth, 5-year CAGR (2.20%) — 12.13%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric OFS RMCO Asset Management median
Debt to equity 0.33 0.01 0.42
Current ratio 0.04 1.41 1.28
Net debt to EBITDA 2.74 0.68 1.06

Dividend

Metric OFS RMCO Asset Management median
Dividend yield 11.66% — 6.92%
Payout ratio 2.13 0.00 0.77

Size

Metric OFS RMCO Asset Management median
Market cap 47.97m 39.22m 721.34m

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