Euronet Worldwide (NASDAQ:EEFT) vs. Oaktree Specialty Lending (NASDAQ:OCSL) Financial Survey

Euronet Worldwide (NASDAQ:EEFT) and Oaktree Specialty Lending (NASDAQ:OCSL) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Valuation and Earnings

This table compares Euronet Worldwide and Oaktree Specialty Lending”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Euronet Worldwide	$4.24 billion	0.60	$309.50 million	$6.93	9.62
Oaktree Specialty Lending	$316.80 million	3.37	$33.92 million	$0.57	21.28

Euronet Worldwide has higher revenue and earnings than Oaktree Specialty Lending. Euronet Worldwide is trading at a lower price-to-earnings ratio than Oaktree Specialty Lending, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Euronet Worldwide and Oaktree Specialty Lending’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Euronet Worldwide	7.15%	28.37%	5.74%
Oaktree Specialty Lending	16.66%	9.56%	4.60%

Institutional and Insider Ownership

91.6% of Euronet Worldwide shares are owned by institutional investors. Comparatively, 36.8% of Oaktree Specialty Lending shares are owned by institutional investors. 12.2% of Euronet Worldwide shares are owned by insiders. Comparatively, 0.3% of Oaktree Specialty Lending shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Euronet Worldwide and Oaktree Specialty Lending, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Euronet Worldwide	2	2	3	0	2.14
Oaktree Specialty Lending	0	5	0	0	2.00

Euronet Worldwide currently has a consensus price target of $95.00, suggesting a potential upside of 42.51%. Oaktree Specialty Lending has a consensus price target of $11.83, suggesting a potential downside of 2.45%. Given Euronet Worldwide’s stronger consensus rating and higher probable upside, analysts plainly believe Euronet Worldwide is more favorable than Oaktree Specialty Lending.

Risk and Volatility

Euronet Worldwide has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Oaktree Specialty Lending has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.

Summary

Euronet Worldwide beats Oaktree Specialty Lending on 11 of the 14 factors compared between the two stocks.

About Euronet Worldwide

Euronet Worldwide, Inc. provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, and individual consumers worldwide. It operates through three segments: Electronic Fund Transfer Processing, epay, and Money Transfer. The Electronic Fund Transfer Processing segment provides electronic payment solutions, including automated teller machine (ATM) cash withdrawal and deposit services, ATM network participation, outsourced ATM and point-of-sale (POS) management solutions, credit and debit and prepaid card outsourcing, card issuing, and merchant acquiring services. It also offers ATM and POS currency conversion, ATM surcharge, advertising, customer relationship management, mobile top-up, bill payment, fraud management, foreign remittance and cardless payout, banknote recycling, and tax-refund services; and integrated electronic financial transaction software solutions for electronic payment and transaction delivery systems. The epay segment distributes and processes prepaid mobile airtime and other electronic payment products; and provides payment processing services for various prepaid products, cards, and services, as well as vouchers and physical gift fulfillment, and gift card distribution and processing services. This segment operates a network of approximately 821,000 POS terminals. The Money Transfer segment offers consumer-to-consumer and account-to-account money transfer, customers bill payment, check cashing, foreign currency exchange, mobile top-up, and cash management and foreign currency risk management services, as well as payment alternatives, such as money orders and prepaid debit cards. The company was formerly known as Euronet Services, Inc. and changed its name to Euronet Worldwide, Inc. in August 2001. Euronet Worldwide, Inc. was founded in 1994 and is headquartered in Leawood, Kansas.

About Oaktree Specialty Lending

Oaktree Specialty Lending Corporation is a business development company. The fund specializing in investments in middle market, bridge financing, first and second lien debt financing, unsecured and mezzanine loan, mezzanine debt, senior and junior secured debt, expansions, sponsor-led acquisitions, preferred equity, and management buyouts in small and mid-sized companies. It seeks to invest in education services, business services, retail and consumer, healthcare, manufacturing, food and restaurants, construction and engineering. The firm also seeks investment in media, advertising sectors, software, IT services, pharmaceuticals, biotechnology, real estate management and development, chemicals, machinery, and internet and direct marketing retail sectors. It invests between $5 million to $75 million principally in the form of one-stop, first lien, and second lien debt investments, which may include an equity co-investment component in companies. The firm invest in companies having enterprise value between $20 million and $150 million and EBITDA between $3 million and $50 million. The fund has a hold size of up to $75 million and may underwrite transactions up to $100 million. It primarily invests in North America. The fund seeks to be a lead investor in its portfolio companies.