Schroders (OTCMKTS:SHNWF) vs. OFS Credit (NASDAQ:OCCI) Critical Analysis

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

Institutional and Insider Ownership

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

Earnings & Valuation

This table compares OFS Credit and Schroders”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OFS Credit	$44.15 million	1.76	-$5.83 million	($0.37)	-13.32
Schroders	$3.80 billion	2.34	$532.88 million	N/A	N/A

Schroders has higher revenue and earnings than OFS Credit.

Volatility and Risk

OFS Credit has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, Schroders has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for OFS Credit and Schroders, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OFS Credit	0	0	0	0	0.00
Schroders	1	1	3	0	2.40

Profitability

This table compares OFS Credit and Schroders’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OFS Credit	N/A	N/A	N/A
Schroders	N/A	N/A	N/A

Summary

Schroders beats OFS Credit on 6 of the 8 factors compared between the two stocks.

About OFS Credit

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

About Schroders

Schroders plc is a publicly owned investment manager. The firm also provides advisory and consultancy services. It provides its services to financial institutions, high net worth clients, large corporate, local authority, charitable entities, individuals, pension plans, government funds, insurance companies, and endowments. The firm launches and manages equity mutual funds and manages fixed income mutual funds for its clients. It also manages hedge for its clients. The firm invests in the public equity, fixed income, and alternative investment markets across the globe. The firm’s alternative investments include real estate markets, emerging market debt, commodities and agriculture funds, funds of hedge funds and private equity funds of funds. It conducts an in-house research to make its investments. The company was formerly known as New Schroders plc and changed its name to Schroders plc in April 2000. Schroders plc was founded on 1804 and is headquartered in London, United Kingdom.