Reviewing Blue Owl Technology Finance (NYSE:OTF) and U.S. Global Investors (NASDAQ:GROW)
by Danessa Lincoln · The Markets DailyBlue Owl Technology Finance (NYSE:OTF – Get Free Report) and U.S. Global Investors (NASDAQ:GROW – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.
Analyst Recommendations
This is a summary of recent ratings and price targets for Blue Owl Technology Finance and U.S. Global Investors, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Blue Owl Technology Finance | 0 | 3 | 4 | 0 | 2.57 |
| U.S. Global Investors | 0 | 1 | 0 | 0 | 2.00 |
Blue Owl Technology Finance currently has a consensus price target of $13.60, indicating a potential upside of 44.45%. Given Blue Owl Technology Finance’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Blue Owl Technology Finance is more favorable than U.S. Global Investors.
Dividends
Blue Owl Technology Finance pays an annual dividend of $1.40 per share and has a dividend yield of 14.9%. U.S. Global Investors pays an annual dividend of $0.09 per share and has a dividend yield of 3.1%. Blue Owl Technology Finance pays out 175.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. U.S. Global Investors pays out 36.0% of its earnings in the form of a dividend.
Volatility and Risk
Blue Owl Technology Finance has a beta of -0.58, suggesting that its stock price is 158% less volatile than the S&P 500. Comparatively, U.S. Global Investors has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.
Profitability
This table compares Blue Owl Technology Finance and U.S. Global Investors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Blue Owl Technology Finance | 28.69% | 7.17% | 3.86% |
| U.S. Global Investors | 29.81% | 6.70% | 6.30% |
Institutional & Insider Ownership
23.6% of U.S. Global Investors shares are owned by institutional investors. 0.1% of Blue Owl Technology Finance shares are owned by company insiders. Comparatively, 19.2% of U.S. Global Investors shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Blue Owl Technology Finance and U.S. Global Investors”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Blue Owl Technology Finance | $1.15 billion | 3.77 | $720.37 million | $0.80 | 11.77 |
| U.S. Global Investors | $10.25 million | 3.50 | $3.06 million | $0.25 | 11.66 |
Blue Owl Technology Finance has higher revenue and earnings than U.S. Global Investors. U.S. Global Investors is trading at a lower price-to-earnings ratio than Blue Owl Technology Finance, indicating that it is currently the more affordable of the two stocks.
Summary
Blue Owl Technology Finance beats U.S. Global Investors on 10 of the 16 factors compared between the two stocks.
About Blue Owl Technology Finance
Blue Owl Technology Finance Corp. is a specialty finance company focused on making debt and equity investments to U.S. technology-related companies, with a strategic focus on software. Blue Owl Technology Finance Corp. is based in NEW YORK.
About U.S. Global Investors
U.S. Global Investors, Inc. is a publicly owned investment manager. It primarily provides its services to investment companies. The firm is a large advisory firm, an investment adviser to an investment company which provides portfolio management for investment companies. The firm manages and launches equity/balanced funds, fixed income funds and other funds. It also manages hedge funds. The firm primarily invests in no-load mutual funds and exchange traded funds (ETFs). U.S. Global Investors, Inc. is based in San Antonio, Texas.