Financial Survey: Goldman Sachs BDC (NYSE:GSBD) and Blue Owl Capital (NYSE:OWL)

Goldman Sachs BDC (NYSE:GSBD) and Blue Owl Capital (NYSE:OWL) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Risk and Volatility

Goldman Sachs BDC has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Blue Owl Capital has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.

Insider and Institutional Ownership

28.7% of Goldman Sachs BDC shares are owned by institutional investors. Comparatively, 35.9% of Blue Owl Capital shares are owned by institutional investors. 0.1% of Goldman Sachs BDC shares are owned by company insiders. Comparatively, 25.7% of Blue Owl Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Goldman Sachs BDC and Blue Owl Capital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Goldman Sachs BDC	$365.57 million	2.66	$119.27 million	$0.52	16.62
Blue Owl Capital	$2.87 billion	5.34	$78.83 million	$0.14	70.16

Goldman Sachs BDC has higher earnings, but lower revenue than Blue Owl Capital. Goldman Sachs BDC is trading at a lower price-to-earnings ratio than Blue Owl Capital, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Goldman Sachs BDC and Blue Owl Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Goldman Sachs BDC	4	2	0	1	1.71
Blue Owl Capital	0	9	7	1	2.53

Goldman Sachs BDC presently has a consensus price target of $8.75, suggesting a potential upside of 1.21%. Blue Owl Capital has a consensus price target of $12.89, suggesting a potential upside of 31.27%. Given Blue Owl Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Blue Owl Capital is more favorable than Goldman Sachs BDC.

Profitability

This table compares Goldman Sachs BDC and Blue Owl Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Goldman Sachs BDC	17.19%	11.04%	4.62%
Blue Owl Capital	3.08%	24.70%	11.42%

Dividends

Goldman Sachs BDC pays an annual dividend of $1.28 per share and has a dividend yield of 14.8%. Blue Owl Capital pays an annual dividend of $0.92 per share and has a dividend yield of 9.4%. Goldman Sachs BDC pays out 246.2% 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 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. Blue Owl Capital has raised its dividend for 4 consecutive years. Goldman Sachs BDC is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Blue Owl Capital beats Goldman Sachs BDC on 12 of the 17 factors compared between the two stocks.

About Goldman Sachs BDC

Goldman Sachs BDC, Inc. is a business development company specializing in middle market and mezzanine investment in private companies. It seeks to make capital appreciation through direct originations of secured debt, senior secured debt, junior secured debt, including first lien, first lien/last-out unitranche and second lien debt, unsecured debt, including mezzanine debt and, to a lesser extent, investments in equities. The fund primarily invests in United States. It seeks to invest between $10 million and $75 million in companies with EBITDA between $5 million and $75 million annually.

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.