Blue Owl Capital (NYSE:OBDC) vs. Vinci Compass Investments (NASDAQ:VINP) Critical Comparison

Vinci Compass Investments (NASDAQ:VINP) and Blue Owl Capital (NYSE:OBDC) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Dividends

Vinci Compass Investments pays an annual dividend of $0.60 per share and has a dividend yield of 4.6%. Blue Owl Capital pays an annual dividend of $1.48 per share and has a dividend yield of 11.6%. Vinci Compass Investments pays out 127.7% 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 pays out 105.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Blue Owl Capital has increased its dividend for 2 consecutive years. Blue Owl Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Vinci Compass Investments has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500. Comparatively, Blue Owl Capital has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Vinci Compass Investments and Blue Owl Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vinci Compass Investments	0	0	3	0	3.00
Blue Owl Capital	1	2	5	2	2.80

Vinci Compass Investments currently has a consensus price target of $13.50, indicating a potential upside of 3.77%. Blue Owl Capital has a consensus price target of $14.56, indicating a potential upside of 14.13%. Given Blue Owl Capital’s higher probable upside, analysts plainly believe Blue Owl Capital is more favorable than Vinci Compass Investments.

Insider & Institutional Ownership

34.1% of Vinci Compass Investments shares are held by institutional investors. Comparatively, 42.8% of Blue Owl Capital shares are held by institutional investors. 49.3% of Vinci Compass Investments shares are held by company insiders. Comparatively, 0.1% of Blue Owl Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Vinci Compass Investments and Blue Owl Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vinci Compass Investments	18.18%	13.83%	7.55%
Blue Owl Capital	36.89%	10.58%	4.56%

Valuation and Earnings

This table compares Vinci Compass Investments and Blue Owl Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vinci Compass Investments	$111.41 million	7.48	$21.92 million	$0.47	27.68
Blue Owl Capital	$1.60 billion	4.08	$741.06 million	$1.41	9.05

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

Summary

Blue Owl Capital beats Vinci Compass Investments on 12 of the 18 factors compared between the two stocks.

About Vinci Compass Investments

Vinci Partners Investments Ltd. operates as an asset management firm in Brazil. The company focuses on private markets, liquid strategies, investment products and solutions, and retirement services. It offers private equity, infrastructure, real estate, credit, special situations, equities, hedge funds, and investment products and solutions comprising portfolio and management services. In addition, the company financial and strategic advisory services, focusing on IPO advisory and mergers and acquisition transactions to entrepreneurs, corporate senior management teams, and boards of directors. Vinci Partners Investments Ltd. was founded in 2009 and is based in Rio de Janeiro, Brazil.

About Blue Owl Capital

Blue Owl Capital Corporation is a business development company. It specializes in direct and fund of fund investments. The fund makes investments in senior secured, direct lending or unsecured loans, subordinated loans or mezzanine loans and also considers equity-related securities including warrants and preferred stocks also pursues preferred equity investments, first lien, unitranche, and second lien term loans and common equity investments. Within private equity, it seeks to invest in growth, acquisitions, market or product expansion, refinancings and recapitalizations. It seeks to invest in middle market and upper middle market companies based in the United States, with EBITDA between $10 million and $250 million annually and/or annual revenue of $50 million and $2.5 billion at the time of investment. It seeks to invest in investments with maturities typically between three and ten years. It seeks to make investments generally ranging in size between $20 million and $250 million.