Comparing Blue Owl Capital (NYSE:OWL) and Victory Capital (NASDAQ:VCTR)

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

Risk and Volatility

Blue Owl Capital has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Victory Capital has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Institutional & Insider Ownership

35.8% of Blue Owl Capital shares are held by institutional investors. Comparatively, 87.7% of Victory Capital shares are held by institutional investors. 33.5% of Blue Owl Capital shares are held by company insiders. Comparatively, 9.8% of Victory Capital 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Blue Owl Capital and Victory Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Owl Capital	0	4	9	0	2.69
Victory Capital	1	3	5	0	2.44

Blue Owl Capital presently has a consensus price target of $20.10, suggesting a potential upside of 0.53%. Victory Capital has a consensus price target of $53.67, suggesting a potential downside of 4.64%. Given Blue Owl Capital’s stronger consensus rating and higher possible upside, equities analysts plainly believe Blue Owl Capital is more favorable than Victory Capital.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Blue Owl Capital	4.64%	19.15%	11.09%
Victory Capital	27.87%	29.74%	12.65%

Dividends

Blue Owl Capital pays an annual dividend of $0.72 per share and has a dividend yield of 3.6%. Victory Capital pays an annual dividend of $1.64 per share and has a dividend yield of 2.9%. Blue Owl Capital pays out 600.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Victory Capital pays out 50.3% of its earnings in the form of a dividend.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Owl Capital	$1.99 billion	14.39	$54.34 million	$0.12	166.75
Victory Capital	$850.96 million	4.29	$213.16 million	$3.26	17.31

Victory Capital has lower revenue, but higher earnings than Blue Owl Capital. Victory Capital 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 Victory Capital on 9 of the 16 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 Victory Capital

Victory Capital Holdings, Inc., together with its subsidiaries, operates as an asset management company in the United States and internationally. It offers investment advisory, fund administration, fund compliance, fund transfer agent, fund distribution, and other management services. The company provides specialized investment strategies to institutions, intermediaries, retirement platforms, and individual investors. Its investment products include actively and passively managed mutual funds; rules-based and active exchange traded funds; institutional separate accounts; variable insurance products; alternative investments; and private closed-end funds; and a 529 Education Savings Plan. The company also offers strategies through third-party investment products, including mutual funds, third-party ETF model strategies, retail separately managed accounts, unified managed accounts through wrap account programs, Collective Investment Trusts, and undertakings for the collective investment in transferable securities. Victory Capital Holdings, Inc. was incorporated in 2013 and is based in San Antonio, Texas.