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

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

Volatility & Risk

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprott	$199.04 million	17.10	$49.29 million	$1.95	67.69
Blue Owl Capital	$2.30 billion	10.28	$109.58 million	$0.06	252.08

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.

Insider & Institutional Ownership

28.3% of Sprott shares are held by institutional investors. Comparatively, 35.9% of Blue Owl Capital shares are held by institutional investors. 18.3% of Sprott shares are held by insiders. Comparatively, 27.2% of Blue Owl Capital shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Sprott and Blue Owl Capital, as reported by MarketBeat.com.

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

Sprott currently has a consensus price target of $132.00, suggesting a potential downside of 0.00%. Blue Owl Capital has a consensus price target of $20.78, suggesting a potential upside of 37.41%. Given Blue Owl Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Blue Owl Capital is more favorable than Sprott.

Dividends

Sprott pays an annual dividend of $1.60 per share and has a dividend yield of 1.2%. Blue Owl Capital pays an annual dividend of $0.90 per share and has a dividend yield of 6.0%. 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 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 has increased its dividend for 1 consecutive years and 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.

Profitability

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

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

Summary

Blue Owl Capital beats Sprott on 13 of the 18 factors compared between the two stocks.

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.

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.