Financial Analysis: Blue Owl Capital (OBDC) and Its Competitors

Blue Owl Capital (NYSE:OBDC) is one of 1,746 public companies in the “Capital Markets” industry, but how does it weigh in compared to its competitors? We will compare Blue Owl Capital to related companies based on the strength of its earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Volatility and Risk

Blue Owl Capital has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Blue Owl Capital’s competitors have a beta of 0.79, indicating that their average share price is 21% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Blue Owl Capital	20.79%	9.40%	4.19%
Blue Owl Capital Competitors	314.66%	9.82%	3.42%

Analyst Recommendations

This is a summary of recent ratings and target prices for Blue Owl Capital and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Owl Capital	0	3	2	1	2.67
Blue Owl Capital Competitors	5615	20217	22568	650	2.37

Blue Owl Capital presently has a consensus price target of $12.17, suggesting a potential upside of 11.77%. As a group, “Capital Markets” companies have a potential upside of 23.73%. Given Blue Owl Capital’s competitors higher probable upside, analysts clearly believe Blue Owl Capital has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Blue Owl Capital and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Blue Owl Capital	$1.85 billion	$800.36 million	16.01
Blue Owl Capital Competitors	$2.39 billion	$398.05 million	14.93

Blue Owl Capital’s competitors have higher revenue, but lower earnings than Blue Owl Capital. Blue Owl Capital is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

42.8% of Blue Owl Capital shares are owned by institutional investors. Comparatively, 30.6% of shares of all “Capital Markets” companies are owned by institutional investors. 0.1% of Blue Owl Capital shares are owned by insiders. Comparatively, 13.1% of shares of all “Capital Markets” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Blue Owl Capital pays an annual dividend of $1.24 per share and has a dividend yield of 11.4%. Blue Owl Capital pays out 182.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 29.2% of their earnings in the form of a dividend. Blue Owl Capital has increased its dividend for 2 consecutive years.

Summary

Blue Owl Capital competitors beat Blue Owl Capital on 8 of the 15 factors compared.

Blue Owl Capital Company Profile

Blue Owl Capital Corporation (NYSE: OBDC) is a business development company that provides financing to middle-market businesses. It invests primarily in privately held U.S. companies, with a focus on lending and other credit investments. The company’s portfolio includes senior secured loans, unitranche and second-lien loans, and, to a lesser extent, equity investments. Its financing can support companies’ growth, acquisitions, recapitalizations, and other business needs. Originally established as Owl Rock Capital Corporation, the company is externally managed by Blue Owl Credit Advisors, an affiliate of alternative asset manager Blue Owl Capital.