Blue Owl Capital (OBDC) versus Its Rivals Critical Analysis

Blue Owl Capital (NYSE:OBDC) is one of 1,743 public companies in the “Capital Markets” industry, but how does it compare to its rivals? We will compare Blue Owl Capital to similar companies based on the strength of its analyst recommendations, dividends, institutional ownership, profitability, valuation, earnings and risk.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Blue Owl Capital and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Owl Capital	0	3	2	1	2.67
Blue Owl Capital Competitors	5561	20139	22479	642	2.37

Blue Owl Capital presently has a consensus price target of $12.17, indicating a potential upside of 11.26%. As a group, “Capital Markets” companies have a potential upside of 26.43%. Given Blue Owl Capital’s rivals higher probable upside, analysts plainly believe Blue Owl Capital has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

42.8% 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. 0.1% of Blue Owl Capital shares are held by company insiders. Comparatively, 13.1% of shares of all “Capital Markets” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Blue Owl Capital pays an annual dividend of $1.24 per share and has a dividend yield of 11.3%. Blue Owl Capital pays out 182.4% 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 3.2% and pay out 29.1% of their earnings in the form of a dividend. Blue Owl Capital has increased its dividend for 2 consecutive years.

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	20.79%	9.40%	4.19%
Blue Owl Capital Competitors	318.24%	11.44%	3.69%

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	$1.85 billion	$800.36 million	16.08
Blue Owl Capital Competitors	$5.22 billion	$399.10 million	17.84

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

Risk & Volatility

Blue Owl Capital has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Blue Owl Capital’s rivals have a beta of 0.79, indicating that their average share price is 21% less volatile than the S&P 500.

Summary

Blue Owl Capital rivals beat Blue Owl Capital on 9 of the 15 factors compared.

Blue Owl Capital Company Profile

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.