Critical Analysis: Blue Owl Capital (NYSE:OWL) versus StoneX Group (NASDAQ:SNEX)

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

Insider and Institutional Ownership

35.8% of Blue Owl Capital shares are held by institutional investors. Comparatively, 75.9% of StoneX Group shares are held by institutional investors. 25.7% of Blue Owl Capital shares are held by insiders. Comparatively, 11.8% of StoneX Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Blue Owl Capital and StoneX Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Owl Capital	0	9	7	1	2.53
StoneX Group	0	3	1	0	2.25

Blue Owl Capital presently has a consensus target price of $13.12, indicating a potential upside of 27.10%. StoneX Group has a consensus target price of $112.00, indicating a potential upside of 112.00%. Given StoneX Group’s higher possible upside, analysts clearly believe StoneX Group is more favorable than Blue Owl Capital.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Blue Owl Capital	3.08%	24.26%	11.38%
StoneX Group	0.33%	20.18%	1.05%

Risk and Volatility

Blue Owl Capital has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, StoneX Group has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Valuation and Earnings

This table compares Blue Owl Capital and StoneX Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Owl Capital	$2.99 billion	5.38	$78.83 million	$0.14	73.71
StoneX Group	$157.71 billion	0.04	$305.90 million	$4.19	12.61

StoneX Group has higher revenue and earnings than Blue Owl Capital. StoneX Group 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.

Summary

Blue Owl Capital beats StoneX Group on 10 of the 15 factors compared between the two stocks.

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.

About StoneX Group

StoneX Group Inc. operates as a global financial services network that connects companies, organizations, traders, and investors to market ecosystem worldwide. The company operates through Commercial, Institutional, Retail, and Global Payments segments. The Commercial segment provides risk management and hedging, exchange-traded and OTC products execution and clearing, voice brokerage, market intelligence, physical trading, and commodity financing and logistics services. The Institutional segment offers equity trading services to institutional clients; clearing and execution services in futures exchanges; brokerage foreign exchange services for the financial institutions and professional traders; and OTC products, as well as originates, structures, and places debt instruments in capital markets. This segment also operates as an institutional dealer in fixed income securities to serve asset managers, commercial bank trust and investment departments, broker-dealers, and insurance companies, as well as engages in asset management business. The Retail segment provides trading services and solutions in the global financial markets, including spot foreign exchange, precious metals trading, and contracts for differences; and wealth management services, as well as offers physical gold and other precious metals in various forms and denominations through Stonexbullion.com. The Global Payments segment provides customized payment, technology, and treasury services to banks and commercial businesses, charities, and non-governmental and government organizations; and pricing and payments services. The company was formerly known as INTL FCStone Inc. and changed its name to StoneX Group Inc. in July 2020. StoneX Group Inc. was founded in 1924 and is headquartered in New York, New York.