Comparing U.S. Global Investors (NASDAQ:GROW) and Blue Owl Technology Finance (NYSE:OTF)

U.S. Global Investors (NASDAQ:GROW) and Blue Owl Technology Finance (NYSE:OTF) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Dividends

U.S. Global Investors pays an annual dividend of $0.09 per share and has a dividend yield of 3.1%. Blue Owl Technology Finance pays an annual dividend of $1.40 per share and has a dividend yield of 15.2%. U.S. Global Investors pays out 36.0% of its earnings in the form of a dividend. Blue Owl Technology Finance pays out 175.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares U.S. Global Investors and Blue Owl Technology Finance”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
U.S. Global Investors	$10.25 million	3.48	$3.06 million	$0.25	11.60
Blue Owl Technology Finance	$1.15 billion	3.69	$720.37 million	$0.80	11.52

Blue Owl Technology Finance has higher revenue and earnings than U.S. Global Investors. Blue Owl Technology Finance is trading at a lower price-to-earnings ratio than U.S. Global Investors, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for U.S. Global Investors and Blue Owl Technology Finance, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
U.S. Global Investors	0	1	0	0	2.00
Blue Owl Technology Finance	0	3	4	0	2.57

Blue Owl Technology Finance has a consensus target price of $13.60, indicating a potential upside of 47.55%. Given Blue Owl Technology Finance’s stronger consensus rating and higher possible upside, analysts plainly believe Blue Owl Technology Finance is more favorable than U.S. Global Investors.

Insider and Institutional Ownership

23.6% of U.S. Global Investors shares are held by institutional investors. 19.2% of U.S. Global Investors shares are held by company insiders. Comparatively, 0.1% of Blue Owl Technology Finance shares are held 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.

Risk and Volatility

U.S. Global Investors has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Blue Owl Technology Finance has a beta of -0.58, indicating that its share price is 158% less volatile than the S&P 500.

Profitability

This table compares U.S. Global Investors and Blue Owl Technology Finance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
U.S. Global Investors	29.81%	6.70%	6.30%
Blue Owl Technology Finance	28.69%	7.17%	3.86%

Summary

Blue Owl Technology Finance beats U.S. Global Investors on 9 of the 16 factors compared between the two stocks.

About U.S. Global Investors

U.S. Global Investors, Inc. is a publicly owned investment manager. It primarily provides its services to investment companies. The firm is a large advisory firm, an investment adviser to an investment company which provides portfolio management for investment companies. The firm manages and launches equity/balanced funds, fixed income funds and other funds. It also manages hedge funds. The firm primarily invests in no-load mutual funds and exchange traded funds (ETFs). U.S. Global Investors, Inc. is based in San Antonio, Texas.

About Blue Owl Technology Finance

Blue Owl Technology Finance Corp. is a specialty finance company focused on making debt and equity investments to U.S. technology-related companies, with a strategic focus on software. Blue Owl Technology Finance Corp. is based in NEW YORK.