SEI Investments (NASDAQ:SEIC) vs. Blue Owl Capital (NYSE:OWL) Critical Comparison
by Scott Moore · The Cerbat GemSEI Investments (NASDAQ:SEIC – Get Free Report) and Blue Owl Capital (NYSE:OWL – Get Free Report) are both large-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.
Profitability
This table compares SEI Investments and Blue Owl Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SEI Investments | 31.17% | 30.70% | 24.76% |
| Blue Owl Capital | 2.75% | 20.93% | 10.58% |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for SEI Investments and Blue Owl Capital, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SEI Investments | 0 | 1 | 7 | 0 | 2.88 |
| Blue Owl Capital | 1 | 7 | 8 | 1 | 2.53 |
SEI Investments presently has a consensus target price of $108.83, suggesting a potential upside of 22.50%. Blue Owl Capital has a consensus target price of $15.84, suggesting a potential upside of 72.68%. Given Blue Owl Capital’s higher possible upside, analysts clearly believe Blue Owl Capital is more favorable than SEI Investments.
Dividends
SEI Investments pays an annual dividend of $1.04 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 9.8%. SEI Investments pays out 17.7% of its earnings in the form of a dividend. Blue Owl Capital pays out 900.0% 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 has increased its dividend for 34 consecutive years and Blue Owl Capital has increased its dividend for 4 consecutive years.
Insider and Institutional Ownership
70.6% of SEI Investments shares are held by institutional investors. Comparatively, 35.9% of Blue Owl Capital shares are held by institutional investors. 14.6% of SEI Investments shares are held by insiders. Comparatively, 27.2% of Blue Owl Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
SEI Investments has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Blue Owl Capital has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.
Earnings and Valuation
This table compares SEI Investments and Blue Owl Capital”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SEI Investments | $2.37 billion | 4.54 | $715.30 million | $5.86 | 15.16 |
| Blue Owl Capital | $2.87 billion | 4.97 | $78.83 million | $0.10 | 91.75 |
SEI Investments has higher earnings, but lower revenue 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.
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.
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.