Reviewing Blue Owl Capital (NYSE:OWL) & Goldman Sachs BDC (NYSE:GSBD)

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

Dividends

Goldman Sachs BDC pays an annual dividend of $1.28 per share and has a dividend yield of 15.0%. Blue Owl Capital pays an annual dividend of $0.92 per share and has a dividend yield of 9.0%. Goldman Sachs BDC pays out 492.3% 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 increased its dividend for 4 consecutive years. Goldman Sachs BDC is clearly the better dividend stock, given its higher yield and lower payout ratio.

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	9.21%	10.56%	4.43%
Blue Owl Capital	3.08%	24.70%	11.42%

Volatility and Risk

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.

Analyst Ratings

This is a summary of current ratings and recommmendations 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	3	0	0	1.43
Blue Owl Capital	0	9	7	1	2.53

Goldman Sachs BDC currently has a consensus price target of $8.50, indicating a potential downside of 0.13%. Blue Owl Capital has a consensus price target of $12.89, indicating a potential upside of 26.37%. Given Blue Owl Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Blue Owl Capital is more favorable than Goldman Sachs BDC.

Institutional and Insider Ownership

28.7% of Goldman Sachs BDC shares are owned by institutional investors. Comparatively, 35.8% of Blue Owl Capital shares are owned by institutional investors. 0.1% of Goldman Sachs BDC shares are owned by insiders. Comparatively, 25.7% of Blue Owl Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Goldman Sachs BDC 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
Goldman Sachs BDC	$42.32 million	22.33	$119.27 million	$0.26	32.73
Blue Owl Capital	$3.07 billion	5.21	$78.83 million	$0.14	72.89

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.

Summary

Blue Owl Capital beats Goldman Sachs BDC on 12 of the 18 factors compared between the two stocks.

About Goldman Sachs BDC

Goldman Sachs BDC, Inc. is a business development company that provides financing to middle-market companies, primarily in the United States. It seeks to support businesses that may need capital for growth, acquisitions, refinancing, or other corporate purposes. The company invests mainly in debt securities, including senior secured, unitranche, second-lien, and subordinated loans. It may also make equity and equity-related investments, often alongside its lending activities. Goldman Sachs BDC is externally managed by Goldman Sachs Asset Management, part of Goldman Sachs.

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.