Hertz Global (NYSE:HTZ) versus Owl Rock Capital (NYSE:ORCC) Head to Head Analysis

Hertz Global (NYSE:HTZ – Get Rating) and Owl Rock Capital (NYSE:ORCC – Get Rating) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Insider & Institutional Ownership

42.2% of Owl Rock Capital shares are held by institutional investors. 0.6% of Hertz Global shares are held by insiders. Comparatively, 0.1% of Owl Rock Capital shares are held 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.

Earnings & Valuation

This table compares Hertz Global and Owl Rock Capital’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hertz Global	$8.92 billion	0.58	$964.63 million	$3.06	5.35
Owl Rock Capital	$535.63 million	9.48	$556.72 million	$1.59	8.19

Hertz Global has higher revenue and earnings than Owl Rock Capital. Hertz Global is trading at a lower price-to-earnings ratio than Owl Rock Capital, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Hertz Global has a beta of 2.09, suggesting that its stock price is 109% more volatile than the S&P 500. Comparatively, Owl Rock Capital has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Hertz Global and Owl Rock Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hertz Global	0	0	0	0	N/A
Owl Rock Capital	1	0	2	0	2.33

Owl Rock Capital has a consensus target price of $14.08, indicating a potential upside of 8.17%. Given Owl Rock Capital’s higher possible upside, analysts plainly believe Owl Rock Capital is more favorable than Hertz Global.

Profitability

This table compares Hertz Global and Owl Rock Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hertz Global	N/A	N/A	N/A
Owl Rock Capital	47.45%	10.49%	4.55%

Summary

Owl Rock Capital beats Hertz Global on 8 of the 13 factors compared between the two stocks.

About Hertz Global

(Get Rating)

The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales.

About Owl Rock Capital

(Get Rating)

Owl Rock Capital Corp non traded business development company seeks investment opportunities in middle market companies located in the United States with an EBITDA of USD 10 – 250 million and annual revenue of USD 50 million – 2.5 billion. The fund focuses on broad range of sectors including business services, healthcare services, pharma & healthcare technology, aerospace & defense, software & technology and manufacturing & industrials. it provides financing in the form of senior secured or unsecured loans, subordinated loans or mezzanine loans and a lesser extent, equity-related securities and warrants for growth, acquisitions, market or product expansion, re-financings and recapitalizations with an investment size ranging from $20 to $250 million and it also acts as a lead investor.