Oxford Square Capital (NASDAQ:OXSQ – Get Free Report) and Forward Industries (NASDAQ:FWDI – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.
Profitability
This table compares Oxford Square Capital and Forward Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Oxford Square Capital | -93.65% | 14.41% | 6.81% |
| Forward Industries | -2,073.82% | -18.05% | -17.03% |
Insider & Institutional Ownership
6.4% of Oxford Square Capital shares are held by institutional investors. 6.5% of Oxford Square Capital shares are held by company insiders. Comparatively, 15.9% of Forward Industries shares are held 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.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Oxford Square Capital | $40.34 million | 3.38 | -$18.73 million | ($0.45) | -2.81 |
| Forward Industries | $18.19 million | 32.74 | -$166.97 million | $0.12 | 67.19 |
Oxford Square Capital has higher revenue and earnings than Forward Industries. Oxford Square Capital is trading at a lower price-to-earnings ratio than Forward Industries, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Oxford Square Capital has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, Forward Industries has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Oxford Square Capital and Forward Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Oxford Square Capital | 1 | 0 | 0 | 0 | 1.00 |
| Forward Industries | 1 | 1 | 2 | 0 | 2.25 |
Forward Industries has a consensus price target of $13.50, indicating a potential upside of 67.43%. Given Forward Industries’ stronger consensus rating and higher possible upside, analysts plainly believe Forward Industries is more favorable than Oxford Square Capital.
Summary
Forward Industries beats Oxford Square Capital on 8 of the 14 factors compared between the two stocks.
About Oxford Square Capital
Oxford Square Capital Corp. is a business development company, operates as a closed-end, non-diversified management investment company. It is a private equity and mezzanine firm. The firm invests in both public and private companies. It invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, common stock and syndicated bank loans. The firm primarily invests in debt and/or equity securities of technology-related companies that operate in the computer software, Internet, information technology infrastructure and services, media, telecommunications and telecommunications equipment, semiconductors, hardware, technology-enabled services, semiconductor capital equipment, medical device technology, diversified technology, and networking systems sectors. It concentrates its investments in companies having annual revenues of less than $200 million and a market capitalization or enterprise value of less than $300 million. The firm invests between $5 million and $30 million per transaction. It seeks to exit its investments within 7 years. It serves as the investment adviser to TICC. Oxford Square Capital Corp., formerly known as TICC Capital Corp., was founded in 2003 and is headquartered in Greenwich, Connecticut.
About Forward Industries
Forward Industries, Inc., together with its subsidiaries, designs, markets, and distributes carry and protective solutions primarily for handheld electronic devices. The company operates in three segments: OEM Distribution, Retail Distribution, and Design. The OEM Distribution segment sources and distributes carrying cases and other accessories for medical monitoring and diagnostic kits; and various portable electronic and non-electronic products, such as sporting and recreational products, bar code scanners, GPS devices, tablets, and firearms. The Retail Distribution segment sources and sells smart-enabled furniture and a range of other products through agreements with various retailers, including in stores and online retailer websites. The Design segment provides hardware and software product design and engineering services. The company sells its products to original equipment manufacturers in the Asia-Pacific, the Americas, Europe, the Middle East, and Africa. Forward Industries, Inc. was incorporated in 1961 and is headquartered in Hauppauge, New York.
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