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AAME vs OFS

AAME
Atlantic American Corporation
NEUTRAL
Price
$2.77
Market Cap
$56.5M
Sector
Financial Services
AI Confidence
65%
OFS
OFS Capital Corporation
BEARISH
Price
$4.10
Market Cap
$54.9M
Sector
Financial Services
AI Confidence
90%

Valuation

P/E Ratio
AAME
12.04
OFS
--
Forward P/E
AAME
--
OFS
4.1
P/B Ratio
AAME
0.52
OFS
0.45
P/S Ratio
AAME
0.27
OFS
1.35
EV/EBITDA
AAME
6.44
OFS
9.29

Profitability

Gross Margin
AAME
12.51%
OFS
100.0%
Operating Margin
AAME
2.88%
OFS
74.33%
Profit Margin
AAME
2.45%
OFS
-81.33%
ROE
AAME
4.75%
OFS
-22.41%
ROA
AAME
1.49%
OFS
4.66%

Growth

Revenue Growth
AAME
20.8%
OFS
-19.6%
Earnings Growth
AAME
--
OFS
--

Financial Health

Debt/Equity
AAME
0.39
OFS
1.77
Current Ratio
AAME
1.5
OFS
0.9
Quick Ratio
AAME
1.16
OFS
0.9

Dividends

Dividend Yield
AAME
0.72%
OFS
16.67%
Payout Ratio
AAME
8.7%
OFS
566.67%

AI Verdict

AAME NEUTRAL

AAME's Piotroski F-Score of 4/9 indicates weak financial health, signaling potential operational inefficiencies and limited profitability sustainability. The absence of an Altman Z-Score raises concern about default risk, particularly given the company's small size and high leverage relative to peers. While the stock trades at a significant discount to its Graham Number ($5.27) and intrinsic value ($1.61), suggesting undervaluation, this is offset by stagnant earnings growth, poor technical momentum, and lack of analyst coverage. The 20.8% revenue growth is encouraging but unconfirmed by earnings data, and the 1Y return of +100.9% may reflect speculative momentum rather than fundamentals.

Strengths
Trading at a deep discount to Graham Number ($5.27) and intrinsic value ($1.61), indicating potential undervaluation
Strong revenue growth of 20.8% YoY, suggesting top-line expansion
Low Price/Book (0.52) and Price/Sales (0.27) ratios, indicating market discount
Risks
Piotroski F-Score of 4/9 indicates weak financial health and operational inefficiencies
No Altman Z-Score available; potential distress risk due to small size and lack of financial resilience
No analyst coverage or target price, indicating low institutional interest and information opacity
OFS BEARISH

OFS exhibits severe financial distress, highlighted by a weak Piotroski F-Score of 2/9 and a catastrophic Q/Q revenue decline of 136.74%. While the stock trades at a deep discount to book value (P/B 0.45), this appears to be a value trap given the negative ROE (-22.41%) and a profit margin of -81.33%. The dividend yield of 16.67% is fundamentally unsustainable with a payout ratio of 566.67%, indicating the company is returning capital it is not earning. Technical trends remain bearish despite a recent short-term bounce.

Strengths
Deeply discounted Price-to-Book ratio (0.45)
Strong gross margins (100%)
Positive Return on Assets (4.66%)
Risks
Unsustainable dividend payout ratio (566.67%)
Severe revenue contraction (YoY -19.60%, Q/Q -136.74%)
Weak financial health (Piotroski F-Score 2/9)

Compare Another Pair

AAME vs OFS: Head-to-Head Comparison

This page compares Atlantic American Corporation (AAME) and OFS Capital Corporation (OFS) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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