Critical Contrast: Blue Owl Capital (NYSE:OWL) and Binah Capital Group (NASDAQ:BCG)

Blue Owl Capital (NYSE:OWL) and Binah Capital Group (NASDAQ:BCG) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Analyst Ratings

This is a breakdown of current ratings and price targets for Blue Owl Capital and Binah Capital Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Owl Capital	0	2	10	0	2.83
Binah Capital Group	0	0	0	0	0.00

Blue Owl Capital presently has a consensus price target of $23.81, suggesting a potential upside of 24.93%. Given Blue Owl Capital’s stronger consensus rating and higher possible upside, analysts clearly believe Blue Owl Capital is more favorable than Binah Capital Group.

Risk & Volatility

Blue Owl Capital has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Binah Capital Group has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.

Insider and Institutional Ownership

35.8% of Blue Owl Capital shares are owned by institutional investors. Comparatively, 5.0% of Binah Capital Group shares are owned by institutional investors. 27.2% of Blue Owl Capital shares are owned by company insiders. Comparatively, 1.9% of Binah Capital Group shares are owned by company 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 Blue Owl Capital and Binah Capital Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blue Owl Capital	3.73%	19.74%	10.54%
Binah Capital Group	-1.10%	-192.35%	-2.91%

Earnings and Valuation

This table compares Blue Owl Capital and Binah Capital Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Owl Capital	$2.47 billion	11.89	$109.58 million	$0.13	146.62
Binah Capital Group	$168.90 million	0.20	-$4.56 million	($0.12)	-16.68

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

Summary

Blue Owl Capital beats Binah Capital Group on 14 of the 14 factors compared between the two stocks.

About Blue Owl Capital

Blue Owl Capital Inc. operates as an asset manager in the United States. The company offers permanent capital base solutions that enables it to offer holistic framework of capital solutions to middle market companies, large alternative asset managers, and corporate real estate owners and tenants. It also provides direct lending products that offer private credit products comprising diversified, technology, first lien, and opportunistic lending to middle-market companies; liquid credit; GP strategic capital products, which offers capital solutions, including GP minority stakes, GP debt financing, and professional sports minority stakes; and real estate products that focuses on acquiring triple net lease real estate by investment grade or creditworthy tenants. It offers its solutions through permanent capital vehicles, as well as long-dated private funds. Blue Owl Capital Inc. is headquartered in New York, New York.

About Binah Capital Group

Binah Capital Group, Inc., together with its subsidiaries, operates in the wealth management industry. The company provides access to stock, bond, exchange-traded fund, and options execution services; and research, compliance, supervision, and accounting and related services for financial advisors. It also offers mutual funds and insurance products, as well as alternative investments, such as non-traded real estate investment trusts, unit trusts, and fixed and variable annuities. The company was founded in 2016 and is headquartered in Albany, New York. Binah Capital Group, Inc. operates as a subsidiary of MHC Securities, LLC.