ONEX (OTCMKTS:ONEXF) and Blue Owl Capital (NYSE:OWL) Financial Contrast

ONEX (OTCMKTS:ONEXF) and Blue Owl Capital (NYSE:OWL) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Earnings & Valuation

This table compares ONEX and Blue Owl Capital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ONEX	$899.00 million	6.36	$617.00 million	$6.68	11.22
Blue Owl Capital	$2.87 billion	5.32	$78.83 million	$0.14	69.66

ONEX has higher earnings, but lower revenue than Blue Owl Capital. ONEX 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.

Dividends

ONEX pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Blue Owl Capital pays an annual dividend of $0.92 per share and has a dividend yield of 9.4%. ONEX pays out 4.2% of its earnings in the form of a dividend. 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. Blue Owl Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ONEX	63.83%	5.24%	4.21%
Blue Owl Capital	3.08%	24.70%	11.42%

Volatility and Risk

ONEX has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Blue Owl Capital has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Insider and Institutional Ownership

0.7% of ONEX shares are held by institutional investors. Comparatively, 35.9% of Blue Owl Capital shares are held by institutional investors. 25.7% of Blue Owl Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for ONEX and Blue Owl Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ONEX	0	1	2	0	2.67
Blue Owl Capital	0	9	7	1	2.53

Blue Owl Capital has a consensus price target of $12.89, suggesting a potential upside of 32.21%. Given Blue Owl Capital’s higher possible upside, analysts plainly believe Blue Owl Capital is more favorable than ONEX.

Summary

Blue Owl Capital beats ONEX on 12 of the 18 factors compared between the two stocks.

About ONEX

Onex Corporation is a Canadian alternative asset manager focused on private equity and credit. The company manages investment strategies for institutional investors and other clients, and invests its own capital alongside them. Through its private equity business, Onex acquires and builds companies, while its credit platform provides financing and invests across a range of credit markets. Its investment activities span North America and Europe, with portfolio companies operating in multiple industries.

About Blue Owl Capital

Blue Owl Capital Inc. is an alternative asset manager that provides private-market investment strategies and capital solutions to institutional and individual investors. Its businesses span private credit, GP strategic capital and real assets. Through its credit platform, the company provides financing to businesses, including middle-market companies. Its GP strategic capital business invests in and provides financing to alternative asset managers, while its real assets platform focuses on areas such as real estate and infrastructure.