Schroders (OTCMKTS:SHNWF) and Blue Owl Capital (NYSE:OWL) Critical Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Schroders	N/A	N/A	N/A
Blue Owl Capital	2.96%	21.97%	10.79%

Earnings & Valuation

This table compares Schroders and Blue Owl Capital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schroders	$4.29 billion	2.73	$711.73 million	N/A	N/A
Blue Owl Capital	$2.87 billion	5.13	$78.83 million	$0.12	78.97

Schroders has higher revenue and earnings than Blue Owl Capital.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schroders	1	4	0	0	1.80
Blue Owl Capital	0	7	7	1	2.60

Blue Owl Capital has a consensus target price of $14.04, suggesting a potential upside of 48.12%. Given Blue Owl Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Blue Owl Capital is more favorable than Schroders.

Risk and Volatility

Schroders has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Blue Owl Capital has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.

Insider and Institutional Ownership

35.9% of Blue Owl Capital shares are held by institutional investors. 25.7% of Blue Owl Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Blue Owl Capital beats Schroders on 11 of the 13 factors compared between the two stocks.

About Schroders

Schroders plc is a publicly owned investment manager. The firm also provides advisory and consultancy services. It provides its services to financial institutions, high net worth clients, large corporate, local authority, charitable entities, individuals, pension plans, government funds, insurance companies, and endowments. The firm launches and manages equity mutual funds and manages fixed income mutual funds for its clients. It also manages hedge for its clients. The firm invests in the public equity, fixed income, and alternative investment markets across the globe. The firm’s alternative investments include real estate markets, emerging market debt, commodities and agriculture funds, funds of hedge funds and private equity funds of funds. It conducts an in-house research to make its investments. The company was formerly known as New Schroders plc and changed its name to Schroders plc in April 2000. Schroders plc was founded on 1804 and is headquartered in London, United Kingdom.

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.