Blue Owl Capital (NYSE:OWL) versus Legal & General Group (OTCMKTS:LGGNY) Financial Analysis

Blue Owl Capital (NYSE:OWL) and Legal & General Group (OTCMKTS:LGGNY) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Dividends

Blue Owl Capital pays an annual dividend of $0.72 per share and has a dividend yield of 2.9%. Legal & General Group pays an annual dividend of $0.75 per share and has a dividend yield of 5.3%. Blue Owl Capital pays out 423.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Blue Owl Capital and Legal & General Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blue Owl Capital	4.95%	19.98%	11.27%
Legal & General Group	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations for Blue Owl Capital and Legal & General Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Owl Capital	0	4	8	0	2.67
Legal & General Group	1	0	0	1	2.50

Blue Owl Capital currently has a consensus target price of $22.31, indicating a potential downside of 9.11%. Given Blue Owl Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Blue Owl Capital is more favorable than Legal & General Group.

Institutional & Insider Ownership

35.9% of Blue Owl Capital shares are owned by institutional investors. Comparatively, 0.0% of Legal & General Group shares are owned by institutional investors. 33.5% of Blue Owl Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Blue Owl Capital and Legal & General Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Owl Capital	$1.73 billion	21.17	$54.34 million	$0.17	144.42
Legal & General Group	$11.97 billion	1.39	$568.46 million	N/A	N/A

Legal & General Group has higher revenue and earnings than Blue Owl Capital.

Risk and Volatility

Blue Owl Capital has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Legal & General Group has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Summary

Blue Owl Capital beats Legal & General Group on 9 of the 15 factors compared between the two stocks.

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.

About Legal & General Group

Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally. It operates in Legal & General Retirement Institutional (LGRI), Legal & General Investment Management (LGIM), Legal & General Capital (LGC), and Retail segments. The LGRI segment offers annuity contracts with guaranteed income for a specified time; and longevity insurance products. The LGIM segment offers index fund management; active fixed income funds and liquidity funds; active equity management; solution and liability driven investment; multi-asset funds; corporate pension scheme solutions; and real assets. The LGC segment provides investment strategy and implementation, and direct investment and structuring services. The Retail segment offers protection products, such as health, disability, critical illness, and accident; individual term assurance; reinsurance; savings and death benefits; annuities; lifetime mortgages; lifetime care plans; retirement interest only mortgages; and workplace savings scheme that provides corporate pension scheme solutions. It is also involved in the unit trust and institutional fund management, mortgage finance, treasury, building project and modular housing development, general insurance, and open-ended investment businesses. In addition, the company engages in the investment, operation, management, trading, and letting and operation of leased real estate; and construction of commercial buildings, financial intermediation, pension tracing and transfer, insurance agents and brokers, fund general partner, commercial lending, venture capital investing, contractual scheme, investor alternative investment fund, collective asset-management, and investment management activities; and provision of investment advisory, business information consultancy, and technology services. Legal & General Group Plc was founded in 1836 and is headquartered in London, the United Kingdom.