Head-To-Head Survey: Blue Owl Capital (NYSE:OWL) vs. Eagle Point Credit (NYSE:ECC)

Blue Owl Capital (NYSE:OWL) and Eagle Point Credit (NYSE:ECC) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Profitability

This table compares Blue Owl Capital and Eagle Point Credit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blue Owl Capital	2.96%	21.97%	10.79%
Eagle Point Credit	12.33%	13.47%	8.14%

Institutional & Insider Ownership

35.8% of Blue Owl Capital shares are owned by institutional investors. Comparatively, 19.5% of Eagle Point Credit shares are owned by institutional investors. 25.7% of Blue Owl Capital shares are owned by insiders. Comparatively, 0.3% of Eagle Point Credit shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Blue Owl Capital has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Eagle Point Credit has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.

Dividends

Blue Owl Capital pays an annual dividend of $0.92 per share and has a dividend yield of 10.9%. Eagle Point Credit pays an annual dividend of $1.44 per share and has a dividend yield of 39.3%. Blue Owl Capital pays out 766.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Eagle Point Credit pays out 151.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Blue Owl Capital has increased its dividend for 4 consecutive years. Eagle Point Credit is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings and recommmendations for Blue Owl Capital and Eagle Point Credit, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Owl Capital	0	7	7	1	2.60
Eagle Point Credit	0	2	3	0	2.60

Blue Owl Capital presently has a consensus price target of $14.04, suggesting a potential upside of 65.59%. Eagle Point Credit has a consensus price target of $6.50, suggesting a potential upside of 77.35%. Given Eagle Point Credit’s higher probable upside, analysts clearly believe Eagle Point Credit is more favorable than Blue Owl Capital.

Earnings and Valuation

This table compares Blue Owl Capital and Eagle Point Credit”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Owl Capital	$2.94 billion	4.48	$78.83 million	$0.12	70.63
Eagle Point Credit	$203.99 million	2.38	-$115.00 million	$0.95	3.86

Blue Owl Capital has higher revenue and earnings than Eagle Point Credit. Eagle Point Credit 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 Eagle Point Credit on 12 of the 17 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 Eagle Point Credit

Eagle Point Credit Company Inc. is a closed ended fund launched and managed by Eagle Point Credit Management LLC. It invests in fixed income markets of the United States. The fund invests equity and junior debt tranches of collateralized loan obligations consisting primarily of below investment grade U.S. senior secured loans. Eagle Point Credit Company Inc. was formed on March 24, 2014 and is domiciled in the United States.