Cannae (NYSE:CNNE) & Blue Owl Capital (NYSE:OWL) Head-To-Head Survey

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

Risk & Volatility

Blue Owl Capital has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Cannae has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Institutional and Insider Ownership

35.9% of Blue Owl Capital shares are held by institutional investors. Comparatively, 88.1% of Cannae shares are held by institutional investors. 27.2% of Blue Owl Capital shares are held by company insiders. Comparatively, 10.9% of Cannae shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Blue Owl Capital and Cannae”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Owl Capital	$2.87 billion	4.74	$78.83 million	$0.10	87.55
Cannae	$423.60 million	1.26	-$513.20 million	($8.92)	-1.29

Blue Owl Capital has higher revenue and earnings than Cannae. Cannae 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Blue Owl Capital and Cannae, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Owl Capital	1	7	7	2	2.59
Cannae	1	1	1	0	2.00

Blue Owl Capital presently has a consensus target price of $18.00, suggesting a potential upside of 105.60%. Cannae has a consensus target price of $16.00, suggesting a potential upside of 39.07%. Given Blue Owl Capital’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Blue Owl Capital is more favorable than Cannae.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Blue Owl Capital	2.75%	20.93%	10.58%
Cannae	-121.15%	-31.78%	-24.73%

Dividends

Blue Owl Capital pays an annual dividend of $0.90 per share and has a dividend yield of 10.3%. Cannae pays an annual dividend of $0.60 per share and has a dividend yield of 5.2%. Blue Owl Capital pays out 900.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cannae pays out -6.7% of its earnings in the form of a dividend. Blue Owl Capital has increased its dividend for 4 consecutive years. Blue Owl Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Blue Owl Capital beats Cannae on 16 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 Cannae

Cannae Holdings, Inc. is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae Holdings, Inc. was founded in 2014 and is based in Las Vegas, Nevada.