Contrasting Blue Owl Capital (NYSE:OWL) & Northern Trust (NASDAQ:NTRSO)

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

Valuation and Earnings

This table compares Northern Trust and Blue Owl Capital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northern Trust	$9.05 billion	N/A	N/A	N/A	N/A
Blue Owl Capital	$2.99 billion	6.17	$78.83 million	$0.12	98.88

Blue Owl Capital has lower revenue, but higher earnings than Northern Trust.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Northern Trust and Blue Owl Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northern Trust	0	0	0	0	0.00
Blue Owl Capital	0	8	7	1	2.56

Blue Owl Capital has a consensus target price of $13.44, suggesting a potential upside of 13.30%. Given Blue Owl Capital’s stronger consensus rating and higher probable upside, analysts clearly believe Blue Owl Capital is more favorable than Northern Trust.

Dividends

Northern Trust pays an annual dividend of $1.18 per share and has a dividend yield of 6.4%. Blue Owl Capital pays an annual dividend of $0.92 per share and has a dividend yield of 7.8%. 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. Blue Owl Capital has raised its dividend for 4 consecutive years. Blue Owl Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

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

Profitability

This table compares Northern Trust and Blue Owl Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northern Trust	N/A	N/A	N/A
Blue Owl Capital	2.71%	23.14%	11.01%

Summary

Blue Owl Capital beats Northern Trust on 11 of the 13 factors compared between the two stocks.

About Northern Trust

Northern Trust Corporation, a financial holding company, provides wealth management, asset servicing, asset management, and banking solutions for corporations, institutions, families, and individuals worldwide. It operates in two segments, Asset Servicing and Wealth Management. The Asset Servicing segment offers asset servicing and related services, including custody, fund administration, investment operations outsourcing, investment management, investment risk and analytical services, employee benefit services, securities lending, foreign exchange, treasury management, brokerage services, transition management services, banking, and cash management services. This segment serves corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors. The Wealth Management segment offers trust, investment management, custody, and philanthropic; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and private and business banking services. This segment serves high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately held businesses. The company also provides asset management services, such as active and passive equity; active and passive fixed income; cash management; muti-asset and alternative asset classes comprising private equity and hedge funds of funds; and multi-manager advisory services and products through separately managed accounts, bank common and collective funds, registered investment companies, exchange traded funds, non-U.S. collective investment funds, and unregistered private investment funds. In addition, it offers overlay and other risk management services. Northern Trust Corporation was founded in 1889 and is headquartered in Chicago, Illinois.

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.