Blue Owl Capital (NYSE:OWL) vs. SEI Investments (NASDAQ:SEIC) Head to Head Analysis

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Owl Capital	$2.87 billion	5.40	$78.83 million	$0.12	83.11
SEI Investments	$2.30 billion	4.72	$715.30 million	$5.86	15.40

SEI Investments has lower revenue, but higher earnings than Blue Owl Capital. SEI Investments 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 breakdown of current ratings and recommmendations for Blue Owl Capital and SEI Investments, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Owl Capital	1	7	8	1	2.53
SEI Investments	0	1	7	0	2.88

Blue Owl Capital currently has a consensus target price of $15.03, suggesting a potential upside of 50.72%. SEI Investments has a consensus target price of $103.00, suggesting a potential upside of 14.17%. Given Blue Owl Capital’s higher possible upside, equities research analysts clearly believe Blue Owl Capital is more favorable than SEI Investments.

Risk & Volatility

Blue Owl Capital has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, SEI Investments has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Blue Owl Capital	2.96%	21.61%	10.80%
SEI Investments	31.17%	30.70%	24.76%

Insider and Institutional Ownership

35.9% of Blue Owl Capital shares are held by institutional investors. Comparatively, 70.6% of SEI Investments shares are held by institutional investors. 27.2% of Blue Owl Capital shares are held by company insiders. Comparatively, 14.6% of SEI Investments shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds 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 9.0%. SEI Investments pays an annual dividend of $1.04 per share and has a dividend yield of 1.2%. Blue Owl Capital pays out 750.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SEI Investments pays out 17.7% of its earnings in the form of a dividend. Blue Owl Capital has increased its dividend for 4 consecutive years and SEI Investments has increased its dividend for 34 consecutive years.

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 SEI Investments

SEI Investments Company is a publicly owned asset management holding company. Through its subsidiaries, the firm provides wealth management, retirement and investment solutions, asset management, asset administration, investment processing outsourcing solutions, financial services, and investment advisory services to its clients. It provides its services to private banks, independent financial advisers, institutional investors, investment managers, investment advisors, wealth management organizations, corporations, retirement scheme sponsors, not-for-profit organizations, hedge fund managers, registered investment advisers, independent broker-dealers, financial planners, life insurance agents, defined-benefit schemes, defined-contribution schemes, endowments, foundations, and board-designated fund, through its subsidiaries. Through its subsidiaries, the firm manages separate client-focused portfolios. It also launches and manages equity, fixed income, and balanced mutual funds, through its subsidiaries. Through its subsidiaries, the firm invests in public equity and fixed income markets. It employs fundamental and quantitative analysis with a focus on top-down and bottom-up analysis to make its investments, through its subsidiaries. SEI Investments Company was founded in 1968 and is based in Oaks, Pennsylvania.