Analyzing Blue Owl Capital (OWL) and Its Rivals

Blue Owl Capital (NYSE:OWLGet Rating) is one of 80 publicly-traded companies in the “Investment advice” industry, but how does it weigh in compared to its competitors? We will compare Blue Owl Capital to similar businesses based on the strength of its profitability, analyst recommendations, valuation, risk, institutional ownership, dividends and earnings.

Risk & Volatility

Blue Owl Capital has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Blue Owl Capital’s competitors have a beta of 1.20, suggesting that their average stock price is 20% more volatile than the S&P 500.

Profitability

This table compares Blue Owl Capital and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blue Owl Capital -5.81% 11.37% 7.86%
Blue Owl Capital Competitors 18.69% 23.11% 10.59%

Institutional and Insider Ownership

27.9% of Blue Owl Capital shares are owned by institutional investors. Comparatively, 50.6% of shares of all “Investment advice” companies are owned by institutional investors. 31.2% of Blue Owl Capital shares are owned by insiders. Comparatively, 21.7% of shares of all “Investment advice” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Blue Owl Capital and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blue Owl Capital 0 2 6 0 2.75
Blue Owl Capital Competitors 476 2629 3201 97 2.46

Blue Owl Capital presently has a consensus target price of $16.29, suggesting a potential upside of 50.65%. As a group, “Investment advice” companies have a potential upside of 27.70%. Given Blue Owl Capital’s stronger consensus rating and higher probable upside, equities analysts plainly believe Blue Owl Capital is more favorable than its competitors.

Earnings and Valuation

This table compares Blue Owl Capital and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Blue Owl Capital $823.88 million -$376.17 million -54.05
Blue Owl Capital Competitors $3.09 billion $514.60 million 12.36

Blue Owl Capital’s competitors have higher revenue and earnings than Blue Owl Capital. Blue Owl Capital is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Blue Owl Capital pays an annual dividend of $0.44 per share and has a dividend yield of 4.1%. Blue Owl Capital pays out -220.0% of its earnings in the form of a dividend. As a group, “Investment advice” companies pay a dividend yield of 3.1% and pay out 40.0% of their earnings in the form of a dividend. Blue Owl Capital is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Summary

Blue Owl Capital competitors beat Blue Owl Capital on 9 of the 15 factors compared.

About Blue Owl Capital

(Get Rating)

Blue Owl Capital Inc. operates as an asset manager. It offers permanent capital base solutions that enables it to offer a holistic platform to middle market companies, large alternative asset managers, and corporate real estate owners and tenants. The company provides direct lending products that offer private credit products comprising diversified, technology, first lien, and opportunistic lending to middle-market companies; GP capital solutions products, which offers capital solutions, including GP minority equity investments, GP debt financing, and professional sports minority investments to large private capital managers; and real estate products that focuses on structuring sale-leaseback transactions, which includes triple net leases. It offers its solutions through permanent capital vehicles, as well as long-dated private funds. The company is headquartered in New York, New York.

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