Live Ventures (NASDAQ: LIVE) and OFS Capital (NASDAQ:OFS) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Dividends

OFS Capital pays an annual dividend of $1.36 per share and has a dividend yield of 12.2%. Live Ventures does not pay a dividend. OFS Capital pays out 106.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Live Ventures and OFS Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Live Ventures 4.00% 16.03% 4.24%
OFS Capital 19.01% 8.71% 4.55%

Valuation and Earnings

This table compares Live Ventures and OFS Capital’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Live Ventures $152.06 million 0.16 $6.50 million N/A N/A
OFS Capital $33.43 million 4.47 $7.90 million $1.28 8.74

OFS Capital has lower revenue, but higher earnings than Live Ventures.

Risk and Volatility

Live Ventures has a beta of -3.18, indicating that its share price is 418% less volatile than the S&P 500. Comparatively, OFS Capital has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Live Ventures and OFS Capital, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Live Ventures 0 0 0 0 N/A
OFS Capital 0 1 1 0 2.50

OFS Capital has a consensus price target of $14.00, suggesting a potential upside of 25.11%. Given OFS Capital’s higher possible upside, analysts clearly believe OFS Capital is more favorable than Live Ventures.

Institutional & Insider Ownership

5.1% of Live Ventures shares are held by institutional investors. Comparatively, 27.5% of OFS Capital shares are held by institutional investors. 64.9% of Live Ventures shares are held by insiders. Comparatively, 0.0% of OFS Capital shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

OFS Capital beats Live Ventures on 10 of the 14 factors compared between the two stocks.

Live Ventures Company Profile

Live Ventures Incorporated, a holding company, engages in the acquisition and operation of companies in various industries in the United States. The company operates through three segments: Manufacturing, Retail and Online, and Services. The Manufacturing segment manufactures and markets carpets and rugs, and yarn products to carpet dealers focusing on the residential, niche commercial, and hospitality end-markets; manufactures carpets, and nylon and polypropylene monofilament turf yarn; and sells hard surface products. The Retail and Online segment operates 58 specialty entertainment retail storefronts that offer entertainment products, including new and pre-owned movies, video games, and music products, as well as ancillary products, such as books, comics, toys, and collectibles. It buys, sells, and trades in new and pre-owned movies, music, video games, electronics, and collectibles through 33 Vintage Stock, 3 V-Stock, 13 Movie Trading company, and 9 EntertainMart retail locations in Texas, Idaho, Oklahoma, Kansas, Missouri, Colorado, Illinois, Arkansas, Utah, and New Mexico. This segment also offers services to customers, such as rentals, special orders, disc and video game hardware repair services, and other services. In addition, the Retail and Online segment operates LiveDeal.com, a deal engine, which connects restaurants with consumers, as well as offers marketing solutions to restaurants to provide customer awareness and merchant visibility on the Internet. Its deal engine is also involved in the online retail of products, including kitchen and dining products, apparel and sporting goods, and children's toys and beauty products. The Services segment offers InstantProfile line of products and services primarily consisting of directory listing services. The company was formerly known as LiveDeal, Inc. and changed its name to Live Ventures Incorporated in October 2015. Live Ventures Incorporated was founded in 1968 and is based in Las Vegas, Nevada.

OFS Capital Company Profile

OFS Capital Corporation (OFS Capital) is an externally managed, closed-end, non-diversified management investment company. The Company’s investment objective is to provide its shareholders with both current income and capital appreciation primarily through debt investments and equity investments. It focuses primarily on middle-market companies in the United States, including senior secured loans, including first-lien, second-lien and unitranche loans, as well as subordinated loans, and warrants and other minority equity securities. The Company may make investments directly or through OFS SBIC I, LP (SBIC I LP), its investment company subsidiary. It focuses on investments in loans, in which OFS Advisor’s investment professionals have expertise, including investments in first-lien, unitranche, second-lien, and mezzanine loans and, to a lesser extent, on warrants and other equity securities. The Company’s investment activities are managed by OFS Capital Management, LLC (OFS Advisor).

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