Blue Owl Capital (NYSE:OWL – Get Free Report) and BlackRock (NYSE:BLK – Get Free Report) are both large-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.
Volatility and Risk
Blue Owl Capital has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, BlackRock has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Blue Owl Capital and BlackRock, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Blue Owl Capital | 0 | 3 | 11 | 0 | 2.79 |
| BlackRock | 0 | 3 | 12 | 0 | 2.80 |
Earnings and Valuation
This table compares Blue Owl Capital and BlackRock”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Blue Owl Capital | $2.30 billion | 12.76 | $109.58 million | $0.09 | 210.11 |
| BlackRock | $20.41 billion | 8.67 | $6.37 billion | $41.36 | 27.63 |
BlackRock has higher revenue and earnings than Blue Owl Capital. BlackRock 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.
Dividends
Blue Owl Capital pays an annual dividend of $0.90 per share and has a dividend yield of 4.8%. BlackRock pays an annual dividend of $20.84 per share and has a dividend yield of 1.8%. Blue Owl Capital pays out 1,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BlackRock pays out 50.4% of its earnings in the form of a dividend. Blue Owl Capital has increased its dividend for 4 consecutive years and BlackRock has increased its dividend for 16 consecutive years.
Profitability
This table compares Blue Owl Capital and BlackRock’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Blue Owl Capital | 2.88% | 19.64% | 10.38% |
| BlackRock | 29.68% | 15.53% | 5.17% |
Institutional and Insider Ownership
35.9% of Blue Owl Capital shares are owned by institutional investors. Comparatively, 80.7% of BlackRock shares are owned by institutional investors. 27.4% of Blue Owl Capital shares are owned by insiders. Comparatively, 2.0% of BlackRock shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
BlackRock beats Blue Owl Capital on 10 of the 17 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 BlackRock
BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks. It also provides global risk management and advisory services. The firm manages separate client-focused equity, fixed income, and balanced portfolios. It also launches and manages open-end and closed-end mutual funds, offshore funds, unit trusts, and alternative investment vehicles including structured funds. The firm launches equity, fixed income, balanced, and real estate mutual funds. It also launches equity, fixed income, balanced, currency, commodity, and multi-asset exchange traded funds. The firm also launches and manages hedge funds. It invests in the public equity, fixed income, real estate, currency, commodity, and alternative markets across the globe. The firm primarily invests in growth and value stocks of small-cap, mid-cap, SMID-cap, large-cap, and multi-cap companies. It also invests in dividend-paying equity securities. The firm invests in investment grade municipal securities, government securities including securities issued or guaranteed by a government or a government agency or instrumentality, corporate bonds, and asset-backed and mortgage-backed securities. It employs fundamental and quantitative analysis with a focus on bottom-up and top-down approach to make its investments. The firm employs liquidity, asset allocation, balanced, real estate, and alternative strategies to make its investments. In real estate sector, it seeks to invest in Poland and Germany. The firm benchmarks the performance of its portfolios against various S&P, Russell, Barclays, MSCI, Citigroup, and Merrill Lynch indices. BlackRock, Inc. was founded in 1988 and is based in New York City with additional offices in Boston, Massachusetts; London, United Kingdom; Gurgaon, India; Hong Kong; Greenwich, Connecticut; Princeton, New Jersey; Edinburgh, United Kingdom; Sydney, Australia; Taipei, Taiwan; Singapore; Sao Paulo, Brazil; Philadelphia, Pennsylvania; Washington, District of Columbia; Toronto, Canada; Wilmington, Delaware; and San Francisco, California.
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