Head to Head Contrast: MGT Capital Investments (OTCMKTS:MGTI) versus Oaktree Specialty Lending (NASDAQ:OCSL)

MGT Capital Investments (OTCMKTS:MGTI) and Oaktree Specialty Lending (NASDAQ:OCSL) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Profitability

This table compares MGT Capital Investments and Oaktree Specialty Lending’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MGT Capital Investments	N/A	N/A	-119.87%
Oaktree Specialty Lending	16.66%	9.56%	4.60%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for MGT Capital Investments and Oaktree Specialty Lending, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGT Capital Investments	0	0	0	0	0.00
Oaktree Specialty Lending	0	5	0	0	2.00

Oaktree Specialty Lending has a consensus target price of $11.83, indicating a potential downside of 2.77%. Given Oaktree Specialty Lending’s stronger consensus rating and higher possible upside, analysts plainly believe Oaktree Specialty Lending is more favorable than MGT Capital Investments.

Institutional & Insider Ownership

36.8% of Oaktree Specialty Lending shares are owned by institutional investors. 0.0% of MGT Capital Investments 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, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

MGT Capital Investments has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500. Comparatively, Oaktree Specialty Lending has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Valuation and Earnings

This table compares MGT Capital Investments and Oaktree Specialty Lending”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGT Capital Investments	$90,000.00	132.01	-$220,000.00	N/A	N/A
Oaktree Specialty Lending	$316.80 million	3.38	$33.92 million	$0.57	21.35

Oaktree Specialty Lending has higher revenue and earnings than MGT Capital Investments.

Summary

Oaktree Specialty Lending beats MGT Capital Investments on 9 of the 11 factors compared between the two stocks.

About MGT Capital Investments

MGT Capital Investments, Inc. engages in cryptocurrency mining business in the United States. The company owns and manages a bitcoin mining facility in LaFayette, Georgia. It also leases space to third parties and self-mining operations; and provides hosting services for third-party owners of miners. The company was incorporated in 1977 and is headquartered in Lafayette, Georgia.

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.