Trinity Capital (NASDAQ:TRIN) versus Oxford Square Capital (NASDAQ:OXSQ) Head-To-Head Survey

Oxford Square Capital (NASDAQ:OXSQ) and Trinity Capital (NASDAQ:TRIN) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Profitability

This table compares Oxford Square Capital and Trinity Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oxford Square Capital	-92.37%	13.41%	6.91%
Trinity Capital	46.18%	14.97%	6.68%

Volatility and Risk

Oxford Square Capital has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, Trinity Capital has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Insider & Institutional Ownership

6.4% of Oxford Square Capital shares are owned by institutional investors. Comparatively, 24.6% of Trinity Capital shares are owned by institutional investors. 8.6% of Oxford Square Capital shares are owned by insiders. Comparatively, 5.3% of Trinity Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Oxford Square Capital and Trinity Capital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oxford Square Capital	-$31.68 million	-5.30	-$18.73 million	($0.43)	-4.47
Trinity Capital	$204.61 million	6.76	$135.60 million	$1.96	8.48

Trinity Capital has higher revenue and earnings than Oxford Square Capital. Oxford Square Capital is trading at a lower price-to-earnings ratio than Trinity Capital, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Oxford Square Capital and Trinity Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oxford Square Capital	1	0	0	0	1.00
Trinity Capital	1	1	5	1	2.75

Trinity Capital has a consensus price target of $16.29, suggesting a potential downside of 2.07%. Given Trinity Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Trinity Capital is more favorable than Oxford Square Capital.

Dividends

Oxford Square Capital pays an annual dividend of $0.42 per share and has a dividend yield of 21.9%. Trinity Capital pays an annual dividend of $2.04 per share and has a dividend yield of 12.3%. Oxford Square Capital pays out -97.7% of its earnings in the form of a dividend. Trinity Capital pays out 104.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Trinity Capital has increased its dividend for 1 consecutive years. Oxford Square Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Trinity Capital beats Oxford Square Capital on 14 of the 18 factors compared between the two stocks.

About Oxford Square Capital

Oxford Square Capital Corp. is a business development company, operates as a closed-end, non-diversified management investment company. It is a private equity and mezzanine firm. The firm invests in both public and private companies. It invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, common stock and syndicated bank loans. The firm primarily invests in debt and/or equity securities of technology-related companies that operate in the computer software, Internet, information technology infrastructure and services, media, telecommunications and telecommunications equipment, semiconductors, hardware, technology-enabled services, semiconductor capital equipment, medical device technology, diversified technology, and networking systems sectors. It concentrates its investments in companies having annual revenues of less than $200 million and a market capitalization or enterprise value of less than $300 million. The firm invests between $5 million and $30 million per transaction. It seeks to exit its investments within 7 years. It serves as the investment adviser to TICC. Oxford Square Capital Corp., formerly known as TICC Capital Corp., was founded in 2003 and is headquartered in Greenwich, Connecticut.

About Trinity Capital

Trinity Capital Inc. is a business development company. It is a venture capital firm specializing in venture debt to growth stage companies looking for loans and/or equipment financing. Trinity Capital Inc. was founded in 2019 is based in Phoenix, Arizona with additional offices in the United States.