Comparing Blue Owl Capital (NYSE:OWL) and Sprott (NYSE:SII)

Blue Owl Capital (NYSE:OWL) and Sprott (NYSE:SII) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and price targets for Blue Owl Capital and Sprott, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Owl Capital	0	5	8	2	2.80
Sprott	0	2	2	0	2.50

Blue Owl Capital presently has a consensus target price of $20.78, suggesting a potential upside of 42.74%. Sprott has a consensus target price of $132.00, suggesting a potential downside of 1.42%. Given Blue Owl Capital’s stronger consensus rating and higher possible upside, equities analysts clearly believe Blue Owl Capital is more favorable than Sprott.

Risk & Volatility

Blue Owl Capital has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Sprott has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Institutional and Insider Ownership

35.9% of Blue Owl Capital shares are owned by institutional investors. Comparatively, 28.3% of Sprott shares are owned by institutional investors. 27.4% of Blue Owl Capital shares are owned by insiders. Comparatively, 18.3% of Sprott shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Blue Owl Capital pays an annual dividend of $0.90 per share and has a dividend yield of 6.2%. Sprott pays an annual dividend of $1.60 per share and has a dividend yield of 1.2%. Blue Owl Capital pays out 1,500.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sprott pays out 82.1% 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 raised its dividend for 4 consecutive years and Sprott has raised its dividend for 1 consecutive years. Blue Owl Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Blue Owl Capital	1.89%	20.05%	10.34%
Sprott	23.26%	15.01%	11.97%

Valuation & Earnings

This table compares Blue Owl Capital and Sprott”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Owl Capital	$2.30 billion	9.89	$109.58 million	$0.06	242.67
Sprott	$178.65 million	19.33	$49.29 million	$1.95	68.67

Blue Owl Capital has higher revenue and earnings than Sprott. Sprott 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 Sprott on 13 of the 18 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 Sprott

Sprott Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides asset management, portfolio management, wealth management, fund management, and administrative and consulting services to its clients. It offers mutual funds, hedge funds, and offshore funds, along with managed accounts. Further, the firm also provides broker-dealer activities. Sprott Inc. was formed on February 13, 2008 and is based in Toronto, Canada.