Head-To-Head Contrast: Blue Owl Capital (NYSE:OBDC) & Robinhood Markets (NASDAQ:HOOD)

Robinhood Markets (NASDAQ:HOOD – Get Free Report) and Blue Owl Capital (NYSE:OBDC – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Earnings and Valuation

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

Robinhood Markets has higher revenue and earnings than Blue Owl Capital. Blue Owl Capital is trading at a lower price-to-earnings ratio than Robinhood Markets, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Analyst Ratings

This is a breakdown of current ratings for Robinhood Markets and Blue Owl Capital, as reported by MarketBeat.

Robinhood Markets currently has a consensus price target of $132.50, suggesting a potential upside of 17.53%. Blue Owl Capital has a consensus price target of $13.00, suggesting a potential upside of 26.03%. Given Blue Owl Capital’s higher probable upside, analysts plainly believe Blue Owl Capital is more favorable than Robinhood Markets.

Volatility and Risk

Robinhood Markets has a beta of 2.35, meaning that its share price is 135% more volatile than the S&P 500. Comparatively, Blue Owl Capital has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Institutional and Insider Ownership

93.3% of Robinhood Markets shares are held by institutional investors. Comparatively, 42.8% of Blue Owl Capital shares are held by institutional investors. 13.5% of Robinhood Markets shares are held by company insiders. Comparatively, 0.1% 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 company will outperform the market over the long term.

Summary

Robinhood Markets beats Blue Owl Capital on 14 of the 15 factors compared between the two stocks.

About Robinhood Markets

(Get Free Report)

Robinhood Markets, Inc. operates financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds (ETFs), American depository receipts, options, gold, and cryptocurrencies. The company offers fractional trading, recurring investments, fully-paid securities lending, access to investing on margin, cash sweep, instant withdrawals, retirement program, around-the-clock trading, and initial public offerings participation services. It also provides various learning and education solutions comprise Snacks, an accessible digest of business news stories for a new generation of investors.; Learn, which is an online collection of beginners' guides, feature tutorials, and financial dictionary; Newsfeeds that offer access to free, premium news from sites from various sites, such as Barron's, Reuters, and Dow Jones. In addition, the company offers In-App Education, a resource that covers investing fundamentals, including why people invest, a stock market overview, and tips on how to define investing goals, as well as allows customers to understand the basics of investing before their first trade; and Crypto Learn and Earn, an educational module available to various crypto customers through Robinhood Learn to teach customers the basics related to cryptocurrency. Further, it provides Robinhood credit cards, cash card and spending accounts, and wallets. Robinhood Markets, Inc. was incorporated in 2013 and is headquartered in Menlo Park, California.

About Blue Owl Capital

(Get Free Report)

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.