Financial Analysis: SouthPeak Interactive (OTCMKTS:SOPK) versus Blue Owl Capital (NYSE:OBDC)

SouthPeak Interactive (OTCMKTS:SOPK) and Blue Owl Capital (NYSE:OBDC) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Institutional & Insider Ownership

42.8% of Blue Owl Capital shares are held by institutional investors. 45.6% of SouthPeak Interactive 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for SouthPeak Interactive and Blue Owl Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SouthPeak Interactive	0	0	0	0	N/A
Blue Owl Capital	1	3	4	0	2.38

Blue Owl Capital has a consensus price target of $16.00, indicating a potential upside of 10.73%.

Earnings and Valuation

This table compares SouthPeak Interactive and Blue Owl Capital’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SouthPeak Interactive	N/A	N/A	N/A	N/A	N/A
Blue Owl Capital	$775.05 million	7.27	$753.61 million	$1.98	7.30

Blue Owl Capital has higher revenue and earnings than SouthPeak Interactive.

Risk & Volatility

SouthPeak Interactive has a beta of 3.19, suggesting that its share price is 219% more volatile than the S&P 500. Comparatively, Blue Owl Capital has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SouthPeak Interactive	N/A	N/A	N/A
Blue Owl Capital	43.61%	12.66%	5.62%

Summary

Blue Owl Capital beats SouthPeak Interactive on 6 of the 8 factors compared between the two stocks.

About SouthPeak Interactive

SouthPeak Interactive Corporation develops, markets, and publishes interactive entertainment software. The company offers videogames for various gaming and entertainment hardware platforms, including home videogame consoles, such as Microsoft Xbox 360, Nintendo Wii, and Sony PS3 and PS2; for handheld platforms, including Nintendo DS, Nintendo DSi, Sony PlayStation Portable, Sony PSPgo, and Apple iPhone; for game applications for the Next Generation NVIDIA Tegra mobile processor, which is used in Droid phones and tablets; and for personal computers. It serves various customers ranging from casual players to hardcore gaming enthusiasts. The company sells its products to retailers and distributors in North America and the United Kingdom, and primarily to distributors in the rest of Europe, Australia, and Asia. SouthPeak Interactive Corporation was founded in 1996 and is based in Midlothian, Virginia.

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.