Head-To-Head Analysis: Guardian Capital Group (OTCMKTS:GCAAF) vs. Oxford Lane Capital (NASDAQ:OXLC)

Oxford Lane Capital (NASDAQ:OXLC) and Guardian Capital Group (OTCMKTS:GCAAF) are both financial services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Oxford Lane Capital and Guardian Capital Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oxford Lane Capital	0	0	0	0	N/A
Guardian Capital Group	0	0	0	0	N/A

Guardian Capital Group has a consensus price target of $32.00, suggesting a potential upside of 2.35%. Given Guardian Capital Group’s higher possible upside, analysts plainly believe Guardian Capital Group is more favorable than Oxford Lane Capital.

Dividends

Oxford Lane Capital pays an annual dividend of $0.98 per share and has a dividend yield of 17.8%. Guardian Capital Group pays an annual dividend of $0.12 per share and has a dividend yield of 0.4%. Oxford Lane Capital pays out 97.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Guardian Capital Group pays out 9.6% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Oxford Lane Capital and Guardian Capital Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oxford Lane Capital	$246.66 million	5.36	$241.81 million	$1.01	5.47
Guardian Capital Group	N/A	N/A	N/A	$1.26	24.90

Oxford Lane Capital has higher revenue and earnings than Guardian Capital Group. Oxford Lane Capital is trading at a lower price-to-earnings ratio than Guardian Capital Group, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

6.7% of Oxford Lane Capital shares are owned by institutional investors. Comparatively, 15.9% of Guardian Capital Group shares are owned by institutional investors. 0.4% of Oxford Lane Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Oxford Lane Capital and Guardian Capital Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oxford Lane Capital	N/A	N/A	N/A
Guardian Capital Group	N/A	N/A	N/A

Summary

Guardian Capital Group beats Oxford Lane Capital on 5 of the 8 factors compared between the two stocks.

About Oxford Lane Capital

Oxford Lane Capital Corp. is a close ended fund launched and managed by Oxford Lane Management LLC. It invests in fixed income securities. The fund primarily invests in securitization vehicles which in turn invest in senior secured loans made to companies whose debt is rated below investment grade or is unrated. Oxford Lane Capital Corp was formed on June 9, 2010 and is domiciled in the United States.

About Guardian Capital Group

Guardian Capital Group Limited, through its subsidiaries, primarily engages in the provision of investment services to a range of clients in Canada, the United States, the United Kingdom, the Caribbean, and internationally. The company operates through two segments: Investment Management, and Corporate Activities and Investments. It provides investment management services comprising investment products and services for government, university and corporate pension funds, insurance companies, foundations, endowments, charitable organizations, unions, labor associations, and taxable corporations. The company also offers portfolio management services for investment funds, third party wrap programs, and affiliated entities under sub-advisory arrangements; and management of proprietary investment funds, including mutual funds and exchange traded funds for retail investors. In addition, it provides wealth management and advice, and outsourced chief investment officer services to high and ultra-high net worth clients; online investment advice through a digital advisor; banking, investment advisory, and trustee services for international clients; and management of limited partnership with a portfolio of real estate, as well as private infrastructure investment. The company was incorporated in 1962 and is headquartered in Toronto, Canada.