Comparing Blue Owl Capital (NYSE:OWL) and Barings Corporate Investors (NYSE:MCI)

Barings Corporate Investors (NYSE:MCI) and Blue Owl Capital (NYSE:OWL) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Profitability

This table compares Barings Corporate Investors and Blue Owl Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Barings Corporate Investors	N/A	N/A	N/A
Blue Owl Capital	2.75%	20.70%	10.60%

Volatility & Risk

Barings Corporate Investors has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, Blue Owl Capital has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Institutional and Insider Ownership

35.9% of Blue Owl Capital shares are held by institutional investors. 1.1% of Barings Corporate Investors shares are held by company insiders. Comparatively, 27.4% of Blue Owl Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Barings Corporate Investors and Blue Owl Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barings Corporate Investors	0	0	0	0	0.00
Blue Owl Capital	1	5	8	2	2.69

Blue Owl Capital has a consensus target price of $19.22, suggesting a potential upside of 48.18%. Given Blue Owl Capital’s stronger consensus rating and higher probable upside, analysts clearly believe Blue Owl Capital is more favorable than Barings Corporate Investors.

Dividends

Barings Corporate Investors pays an annual dividend of $1.60 per share and has a dividend yield of 7.8%. Blue Owl Capital pays an annual dividend of $0.90 per share and has a dividend yield of 6.9%. Blue Owl Capital pays out 900.0% 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 raised its dividend for 4 consecutive years.

Earnings and Valuation

This table compares Barings Corporate Investors and Blue Owl Capital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Barings Corporate Investors	N/A	N/A	N/A	N/A	N/A
Blue Owl Capital	$2.87 billion	7.05	$78.83 million	$0.10	129.70

Blue Owl Capital has higher revenue and earnings than Barings Corporate Investors.

Summary

Blue Owl Capital beats Barings Corporate Investors on 12 of the 14 factors compared between the two stocks.

About Barings Corporate Investors

Babson Capital Corporate Investors trust is a closed ended fixed income mutual fund launched and managed by Barings LLC. It invests in fixed income markets of the United States. The fund seeks to invest in securities of companies operating across diversified sectors. It primarily invests in a portfolio of privately placed, below-investment grade, long term corporate debt obligations. The fund also invests in marketable investment grade debt securities, other marketable debt securities, and marketable common stocks. It was formerly known as Babson Capital Corporate Investors. Babson Capital Corporate Investors trust was formed in 1971 and is domiciled in the United States.

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.