B. Riley Financial (NASDAQ:RILY) versus Blue Owl Capital (NYSE:OBDC) Head-To-Head Review

Blue Owl Capital (NYSE:OBDC) and B. Riley Financial (NASDAQ:RILY) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Blue Owl Capital	16.99%	9.49%	4.19%
B. Riley Financial	35.88%	39,260.09%	22.99%

Volatility & Risk

Blue Owl Capital has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, B. Riley Financial has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.

Insider & Institutional Ownership

42.8% of Blue Owl Capital shares are owned by institutional investors. Comparatively, 50.2% of B. Riley Financial shares are owned by institutional investors. 0.1% of Blue Owl Capital shares are owned by insiders. Comparatively, 27.8% of B. Riley Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Owl Capital	$1.85 billion	3.03	$800.36 million	$0.56	20.31
B. Riley Financial	$967.60 million	0.29	$307.42 million	$12.70	0.55

Blue Owl Capital has higher revenue and earnings than B. Riley Financial. B. Riley Financial 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 recent recommendations and price targets for Blue Owl Capital and B. Riley Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Owl Capital	0	3	4	1	2.75
B. Riley Financial	1	0	0	0	1.00

Blue Owl Capital currently has a consensus price target of $13.00, indicating a potential upside of 14.29%. Given Blue Owl Capital’s stronger consensus rating and higher probable upside, research analysts clearly believe Blue Owl Capital is more favorable than B. Riley Financial.

Summary

Blue Owl Capital beats B. Riley Financial on 8 of the 15 factors compared between the two stocks.

About Blue Owl Capital

Blue Owl Capital Corporation is a business development company. It specializes in direct and fund of fund investments. The fund makes investments in senior secured, direct lending or unsecured loans, subordinated loans or mezzanine loans and also considers equity-related securities including warrants and preferred stocks also pursues preferred equity investments, first lien, unitranche, and second lien term loans and common equity investments. Within private equity, it seeks to invest in growth, acquisitions, market or product expansion, refinancings and recapitalizations. It seeks to invest in middle market and upper middle market companies based in the United States, with EBITDA between $10 million and $250 million annually and/or annual revenue of $50 million and $2.5 billion at the time of investment. It seeks to invest in investments with maturities typically between three and ten years. It seeks to make investments generally ranging in size between $20 million and $250 million.

About B. Riley Financial

B. Riley Financial, Inc., through its subsidiaries, provides financial services to corporate, institutional, and high net worth clients in North America, Australia, the Asia Pacific, and Europe. The company operates through six segments: Capital Markets, Wealth Management, Financial Consulting, Auction and Liquidation, Communications, and Consumer. The Capital Markets segments offers investment banking, equity research, institutional sales and trading, securities lending, fund and asset management, direct lending, venture capital, proprietary trading, and investment services; merger and acquisition, restructuring advisory, and recapitalization services; public and private equity offerings; and debt financing solutions. This segment also trades in equity securities. The Wealth Management segment provides wealth management and tax services. The Financial Consulting segment offers bankruptcy restructuring and turnaround management, forensic accounting and litigation support, valuation and appraisal, and real estate services. The Auction and Liquidation Segment provides auction and liquidation services. The Communications segment offers dial-up, mobile broadband and digital subscriber line services under the NetZero and Juno brands; cloud communication services; VoIP cloud-based technology and communication devices and subscription services through magicJack; and mobile phone voice, text, and data services and devices through Marconi Wireless. The Consumer segment sells laptop and computer accessories. The company was formerly known as Great American Group, Inc. and changed its name to B. Riley Financial, Inc. in November 2014. B. Riley Financial, Inc. was founded in 1973 and is headquartered in Los Angeles, California.