Head-To-Head Survey: Oaktree Specialty Lending (NASDAQ:OCSL) versus Robinhood Markets (NASDAQ:HOOD)

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Robinhood Markets and Oaktree Specialty Lending, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Robinhood Markets	0	3	23	2	2.96
Oaktree Specialty Lending	0	6	0	0	2.00

Robinhood Markets currently has a consensus price target of $132.83, suggesting a potential upside of 19.50%. Oaktree Specialty Lending has a consensus price target of $11.83, suggesting a potential downside of 1.31%. Given Robinhood Markets’ stronger consensus rating and higher possible upside, research analysts plainly believe Robinhood Markets is more favorable than Oaktree Specialty Lending.

Insider & Institutional Ownership

93.3% of Robinhood Markets shares are owned by institutional investors. Comparatively, 36.8% of Oaktree Specialty Lending shares are owned by institutional investors. 13.5% of Robinhood Markets shares are owned by company insiders. Comparatively, 0.3% of Oaktree Specialty Lending shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Robinhood Markets	42.01%	22.43%	4.56%
Oaktree Specialty Lending	14.45%	9.70%	4.64%

Volatility and Risk

Robinhood Markets has a beta of 2.35, indicating that its stock price is 135% more volatile than the S&P 500. Comparatively, Oaktree Specialty Lending has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Valuation and Earnings

This table compares Robinhood Markets 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
Robinhood Markets	$4.47 billion	22.34	$1.88 billion	$2.27	48.96
Oaktree Specialty Lending	$316.80 million	3.33	$33.92 million	$0.48	24.98

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

Summary

Robinhood Markets beats Oaktree Specialty Lending on 14 of the 15 factors compared between the two stocks.

About Robinhood Markets

Robinhood Markets, Inc. operates financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds (ETFs), American depository receipts, options, gold, and cryptocurrencies. The company offers fractional trading, recurring investments, fully-paid securities lending, access to investing on margin, cash sweep, instant withdrawals, retirement program, around-the-clock trading, and initial public offerings participation services. It also provides various learning and education solutions comprise Snacks, an accessible digest of business news stories for a new generation of investors.; Learn, which is an online collection of beginners' guides, feature tutorials, and financial dictionary; Newsfeeds that offer access to free, premium news from sites from various sites, such as Barron's, Reuters, and Dow Jones. In addition, the company offers In-App Education, a resource that covers investing fundamentals, including why people invest, a stock market overview, and tips on how to define investing goals, as well as allows customers to understand the basics of investing before their first trade; and Crypto Learn and Earn, an educational module available to various crypto customers through Robinhood Learn to teach customers the basics related to cryptocurrency. Further, it provides Robinhood credit cards, cash card and spending accounts, and wallets. Robinhood Markets, Inc. was incorporated in 2013 and is headquartered in Menlo Park, California.

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.