Grosvenor Capital Management (NASDAQ:GCMG) vs. Blue Owl Capital (NYSE:OWL) Head to Head Review

Blue Owl Capital (NYSE:OWLGet Rating) and Grosvenor Capital Management (NASDAQ:GCMGGet Rating) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Institutional & Insider Ownership

32.0% of Blue Owl Capital shares are owned by institutional investors. Comparatively, 21.6% of Grosvenor Capital Management shares are owned by institutional investors. 31.2% of Blue Owl Capital shares are owned by insiders. Comparatively, 77.3% of Grosvenor Capital Management shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Blue Owl Capital -43.10% -21.99% -15.00%
Grosvenor Capital Management 4.43% -183.85% 21.73%

Dividends

Blue Owl Capital pays an annual dividend of $0.40 per share and has a dividend yield of 3.6%. Grosvenor Capital Management pays an annual dividend of $0.40 per share and has a dividend yield of 4.9%. Grosvenor Capital Management pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

Blue Owl Capital has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Grosvenor Capital Management has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.

Valuation & Earnings

This table compares Blue Owl Capital and Grosvenor Capital Management’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Blue Owl Capital $823.88 million 18.90 -$376.17 million N/A N/A
Grosvenor Capital Management $531.59 million 2.90 $21.48 million $0.38 21.53

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

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blue Owl Capital 0 1 6 0 2.86
Grosvenor Capital Management 0 1 2 0 2.67

Blue Owl Capital presently has a consensus target price of $17.50, suggesting a potential upside of 57.23%. Grosvenor Capital Management has a consensus target price of $11.00, suggesting a potential upside of 34.47%. Given Blue Owl Capital’s stronger consensus rating and higher probable upside, equities analysts plainly believe Blue Owl Capital is more favorable than Grosvenor Capital Management.

Summary

Blue Owl Capital beats Grosvenor Capital Management on 9 of the 14 factors compared between the two stocks.

Blue Owl Capital Company Profile (Get Rating)

Blue Owl Capital Inc. operates as an asset manager. It offers permanent capital base solutions that enables it to offer a holistic platform to middle market companies, large alternative asset managers, and corporate real estate owners and tenants. The company provides direct lending products that offer private credit products comprising diversified, technology, first lien, and opportunistic lending to middle-market companies; GP capital solutions products, which offers capital solutions, including GP minority equity investments, GP debt financing, and professional sports minority investments to large private capital managers; and real estate products that focuses on structuring sale-leaseback transactions, which includes triple net leases. It offers its solutions through permanent capital vehicles, as well as long-dated private funds. The company is headquartered in New York, New York.

Grosvenor Capital Management Company Profile (Get Rating)

Grosvenor Capital Management, L.P. is global alternative asset management solutions provider. The firm primarily provides its services to pooled investment vehicles. It also provides its services to investment companies, high net worth individuals, pension and profit sharing plans and state or municipal government entities. The firm invests in equity and alternative investment markets of the United States and internationally. The firm invests in multi-strategy, credit-focused, equity-focused, macro-focused, commodity-focused, and other specialty portfolios. It focuses in hedge fund asset classes, private equity, real estate, and/or infrastructure, credit and absolute return strategies. It also focuses in primary fund investments, secondary fund investments, and co-investments with a focus on buyout, distressed debt, mezzanine, venture capital/growth equity investments. The firm seeks to make regionally-focused investments in middle-market buyout. It prefers to invest in aerospace and defense, advanced electronics, information technology, biosciences, and advanced materials. It focuses on Ohio and the Midwest region. The firm employs fundamental and quantitative analysis. Grosvenor Capital Management, L.P. was founded in 1971 and is based in Chicago, Illinois with additional offices in North America, Asia and Europe.

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