OFS Credit (NASDAQ:OCCI) vs. Hamilton Lane (NASDAQ:HLNE) Head to Head Analysis

Hamilton Lane (NASDAQ:HLNE) and OFS Credit (NASDAQ:OCCI) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Dividends

Hamilton Lane pays an annual dividend of $2.16 per share and has a dividend yield of 2.4%. OFS Credit pays an annual dividend of $1.25 per share and has a dividend yield of 34.6%. Hamilton Lane pays out 38.8% of its earnings in the form of a dividend. OFS Credit pays out -95.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Hamilton Lane has raised its dividend for 8 consecutive years. OFS Credit is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

97.4% of Hamilton Lane shares are held by institutional investors. Comparatively, 23.8% of OFS Credit shares are held by institutional investors. 22.2% of Hamilton Lane shares are held by insiders. Comparatively, 1.0% of OFS Credit shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Hamilton Lane and OFS Credit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hamilton Lane	30.59%	27.82%	16.02%
OFS Credit	N/A	N/A	N/A

Earnings and Valuation

This table compares Hamilton Lane and OFS Credit”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hamilton Lane	$712.96 million	6.93	$217.42 million	$5.57	15.90
OFS Credit	$44.15 million	2.38	-$38.11 million	($1.31)	-2.76

Hamilton Lane has higher revenue and earnings than OFS Credit. OFS Credit is trading at a lower price-to-earnings ratio than Hamilton Lane, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations for Hamilton Lane and OFS Credit, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hamilton Lane	0	4	6	0	2.60
OFS Credit	0	0	0	0	0.00

Hamilton Lane currently has a consensus target price of $155.38, indicating a potential upside of 75.45%. Given Hamilton Lane’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Hamilton Lane is more favorable than OFS Credit.

Volatility & Risk

Hamilton Lane has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, OFS Credit has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.

Summary

Hamilton Lane beats OFS Credit on 15 of the 17 factors compared between the two stocks.

About Hamilton Lane

Hamilton Lane Incorporated is a private equity firm specializing in early venture, emerging growth, turnaround, middle market, mature, mid-venture, bridge, buyout, distressed/vulture, loan, mezzanine in growth capital companies. It prefers to invest in energy, industrials, consumer discretionary, health care, real estate, information technology, utilities, and consumer services. The firm prefers to invest in Africa/Middle East, Asia/Pacific, Europe, Latin America and Caribbean, United States of America, and Canada. The firm prefers to invest between $1 million and $100 million. It prefers to take majority stake. Hamilton Lane Incorporated was founded in 1991 and is based in Conshohocken, Pennsylvania with additional offices across Europe, North America, Asia Pacific and the Middle East.

About OFS Credit

OFS Credit Company, Inc. is a fund of OFS Advisor.