Head-To-Head Analysis: Blue Owl Capital (NYSE:OWL) vs. Monroe Capital (NASDAQ:MRCC)

Blue Owl Capital (NYSE:OWL) and Monroe Capital (NASDAQ:MRCC) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Blue Owl Capital N/A N/A N/A
Monroe Capital 82.79% 9.18% 3.82%

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Blue Owl Capital N/A N/A -$5.28 million N/A N/A
Monroe Capital $61.58 million 3.55 $1.65 million $1.47 6.91

Monroe Capital has higher revenue and earnings than Blue Owl Capital.

Dividends

Blue Owl Capital pays an annual dividend of $0.16 per share and has a dividend yield of 1.0%. Monroe Capital pays an annual dividend of $1.00 per share and has a dividend yield of 9.8%. Monroe Capital pays out 68.0% of its earnings in the form of a dividend. Monroe Capital has raised its dividend for 1 consecutive years. Monroe Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent ratings for Blue Owl Capital and Monroe Capital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blue Owl Capital 0 0 2 0 3.00
Monroe Capital 0 1 0 0 2.00

Blue Owl Capital currently has a consensus price target of $17.50, suggesting a potential upside of 14.23%. Given Blue Owl Capital’s stronger consensus rating and higher possible upside, equities analysts clearly believe Blue Owl Capital is more favorable than Monroe Capital.

Institutional and Insider Ownership

20.1% of Monroe Capital shares are owned by institutional investors. 3.2% of Monroe Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Monroe Capital beats Blue Owl Capital on 9 of the 13 factors compared between the two stocks.

About Blue Owl Capital

Blue Owl Capital Inc. operates as an asset manager. The company provides investors access to direct lending and GP capital solutions strategies through various vehicles. Its breadth of offerings and permanent capital base enables it to offer a holistic platform of capital solutions to participants throughout the private market ecosystem, including alternative asset managers and private middle market corporations. The company is based in New York, New York.

About Monroe Capital

Monroe Capital Corp. is an externally managed, closed-end, non-diversified management investment company, which engages in the provision of financial solutions. Its investment objective is to maximize the total return to our stockholders in the form of current income and capital appreciation. The company was founded on February 9, 2011 and is headquartered in Chicago, IL.

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