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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oaktree Specialty Lending	$316.80 million	3.31	$33.92 million	$0.57	20.91
Euronet Worldwide	$4.24 billion	0.60	$309.50 million	$6.93	9.63

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.

Volatility and Risk

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

Analyst Ratings

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

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

Oaktree Specialty Lending currently has a consensus target price of $11.83, suggesting a potential downside of 0.73%. Euronet Worldwide has a consensus target price of $95.00, suggesting a potential upside of 42.34%. Given Euronet Worldwide’s stronger consensus rating and higher possible upside, analysts clearly believe Euronet Worldwide is more favorable than Oaktree Specialty Lending.

Profitability

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

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

Insider and Institutional Ownership

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

Summary

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

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.

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.