Comparing Baltic International USA and Oxford Square Capital: An Investment Perspective
Overview of Both Companies
Baltic International USA
Baltic International USA, listed on the OTC markets under the ticker BISA, is a finance company primarily focused on investigating and acquiring a target company or business that seeks to go public. Founded in 1991, this Houston-based firm lacks significant operations, operating mainly as a blank-check company.
Oxford Square Capital
Conversely, Oxford Square Capital trades on the NASDAQ as OXSQ. It’s characterized as a business development company (BDC), acting as a closed-end, non-diversified management investment company. The firm focuses on both public and private companies, primarily investing in debt and equity securities across various sectors, including technology and telecommunications. Established in 2003 and headquartered in Greenwich, Connecticut, Oxford Square Capital has established a reputation for making substantial investments in firms with annual revenues under $200 million.
Risk and Volatility
When assessing the volatility of these two stocks, Baltic International USA showcases a beta of -1.32, indicating its share price is significantly less volatile than the S&P 500, by about 232%. In contrast, Oxford Square Capital has a lower beta of 0.5, indicating it is 50% less volatile than the broader market. This difference may appeal to more risk-averse investors who prefer stable investment options.
Analyst Ratings
Examining analyst ratings can be crucial for making informed investment decisions. Currently, Baltic International USA holds a 0.00 rating score with no sell, hold, buy, or strong buy ratings. On the other hand, Oxford Square Capital receives a 1.00 rating score, reflecting one sell rating and no holds or buys. This discrepancy may indicate analysts’ preference for Oxford Square, which can influence investor decisions.
| Company | Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|---|---|---|---|---|
| Baltic International USA | 0 | 0 | 0 | 0 | 0.00 |
| Oxford Square Capital | 1 | 0 | 0 | 0 | 1.00 |
Institutional & Insider Ownership
Ownership patterns provide insights into a company’s potential for growth. For Oxford Square Capital, 6.4% of shares are owned by institutional investors, suggesting a level of institutional interest that could indicate confidence in its growth potential. In contrast, Baltic International USA has a substantial 29.4% of shares owned by insiders, as compared to 8.6% for Oxford Square. While high insider ownership can reflect confidence in the company’s future, the lack of institutional backing may raise questions about potential scalability.
Profitability
Profitability metrics reveal the financial health of a company. For Baltic International USA, the net margins are N/A due to a lack of revenue, with a staggering return on assets at -806.45%, signaling significant losses. Oxford Square Capital, however, shows a net margin of -6.39% along with a positive return on equity of 14.80% and return on assets of 7.88%. This strong performance suggests that Oxford Square is better positioned financially than Baltic International.
| Company | Net Margins | Return on Equity | Return on Assets |
|---|---|---|---|
| Baltic International USA | N/A | N/A | -806.45% |
| Oxford Square Capital | -6.39% | 14.80% | 7.88% |
Valuation & Earnings
Valuation is critical for determining whether a stock is worth the investment. In terms of gross revenue, Oxford Square Capital significantly outperforms Baltic International USA with $42.68 million compared to BISA, which does not report any revenue. While Baltic shows a net income of -$30,000.00, Oxford Square reports a net income of $5.88 million.
The metrics for earnings per share (EPS) reveal that Baltic International has an EPS of ($0.01), while Oxford Square shows ($0.04), indicating losses but placing Oxford Square in a context of more substantial financial operations. Additionally, Oxford Square’s price-to-earnings ratio of -43.75 marks it as current more affordable than Baltic’s undefined metrics.
| Company | Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|---|---|---|---|---|
| Baltic International USA | N/A | N/A | -$30,000.00 | ($0.01) | -0.03 |
| Oxford Square Capital | $42.68 million | 3.35 | $5.88 million | ($0.04) | -43.75 |
Summary Insights
A comprehensive comparison suggests that Oxford Square Capital surpasses Baltic International USA on multiple fronts, performing better across 7 out of the 11 examined factors. Factors such as profitability, analyst recommendations, and valuation metrics tilts the balance in favor of Oxford Square, painting a favorable picture for potential investors considering these two small-cap finance companies.