Critical Comparison: Blue Owl Capital (OWL) vs. Its Rivals

Blue Owl Capital (NYSE:OWL) is one of 1,744 public companies in the “Capital Markets” industry, but how does it contrast to its rivals? We will compare Blue Owl Capital to related businesses based on the strength of its risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations for Blue Owl Capital and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Owl Capital	0	9	7	1	2.53
Blue Owl Capital Competitors	5550	20122	22457	642	2.37

Blue Owl Capital presently has a consensus price target of $12.89, indicating a potential upside of 21.02%. As a group, “Capital Markets” companies have a potential upside of 21.83%. Given Blue Owl Capital’s rivals higher possible upside, analysts plainly believe Blue Owl Capital has less favorable growth aspects than its rivals.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Blue Owl Capital	$2.87 billion	$78.83 million	76.11
Blue Owl Capital Competitors	$5.22 billion	$399.10 million	17.71

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Blue Owl Capital	3.08%	24.70%	11.42%
Blue Owl Capital Competitors	318.34%	79.19%	3.72%

Risk and Volatility

Blue Owl Capital has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, Blue Owl Capital’s rivals have a beta of 0.80, suggesting that their average stock price is 20% 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 8.6%. Blue Owl Capital pays out 657.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Capital Markets” companies pay a dividend yield of 3.1% and pay out 30.0% of their earnings in the form of a dividend. Blue Owl Capital has raised its dividend for 4 consecutive years.

Insider & Institutional Ownership

35.9% of Blue Owl Capital shares are held by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are held by institutional investors. 25.7% of Blue Owl Capital shares are held by company insiders. Comparatively, 13.0% of shares of all “Capital Markets” companies 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.

Summary

Blue Owl Capital beats its rivals on 8 of the 15 factors compared.

Blue Owl Capital Company Profile

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.