Oxford Square Capital (NASDAQ:OXSQ) and BNY Mellon Municipal Income (NYSE:DMF) Critical Survey

Oxford Square Capital (NASDAQ:OXSQ) and BNY Mellon Municipal Income (NYSE:DMF) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.

Volatility & Risk

Oxford Square Capital has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, BNY Mellon Municipal Income has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Profitability

This table compares Oxford Square Capital and BNY Mellon Municipal Income’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oxford Square Capital	18.57%	17.71%	9.06%
BNY Mellon Municipal Income	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for Oxford Square Capital and BNY Mellon Municipal Income, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oxford Square Capital	0	0	0	0	N/A
BNY Mellon Municipal Income	0	0	0	0	N/A

Dividends

Oxford Square Capital pays an annual dividend of $0.42 per share and has a dividend yield of 13.9%. BNY Mellon Municipal Income pays an annual dividend of $0.19 per share and has a dividend yield of 2.7%. Oxford Square Capital pays out 247.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Oxford Square Capital and BNY Mellon Municipal Income’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oxford Square Capital	$51.82 million	3.65	$17.24 million	$0.17	17.77
BNY Mellon Municipal Income	N/A	N/A	N/A	N/A	N/A

Oxford Square Capital has higher revenue and earnings than BNY Mellon Municipal Income.

Insider & Institutional Ownership

6.4% of Oxford Square Capital shares are held by institutional investors. 11.6% of Oxford Square Capital shares are held by insiders. Comparatively, 1.0% of BNY Mellon Municipal Income shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Oxford Square Capital beats BNY Mellon Municipal Income on 8 of the 9 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 BNY Mellon Municipal Income

BNY Mellon Municipal Income, Inc. is a closed ended fixed income mutual fund launched and managed by BNY Mellon Investment Adviser, Inc. It invests in the fixed income markets of the United States. The fund primarily invests in municipal obligations that are rated investment grade and have maturities of less than one year. It employs fundamental analysis to create its portfolio. The fund was formerly known as Dreyfus Municipal Income, Inc. BNY Mellon Municipal Income, Inc. was formed on October 24, 1988 and is domiciled in the United States.