Analyzing Barings Corporate Investors (NYSE:MCI) and Blue Owl Capital (NYSE:OWL)
by Danessa Lincoln · The Markets DailyBarings Corporate Investors (NYSE:MCI – Get Free Report) and Blue Owl Capital (NYSE:OWL – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.
Valuation & Earnings
This table compares Barings Corporate Investors and Blue Owl Capital”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Barings Corporate Investors | N/A | N/A | N/A | N/A | N/A |
| Blue Owl Capital | $2.30 billion | 8.17 | $109.58 million | $0.06 | 200.42 |
Blue Owl Capital has higher revenue and earnings than Barings Corporate Investors.
Volatility & Risk
Barings Corporate Investors has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500. Comparatively, Blue Owl Capital has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.
Dividends
Barings Corporate Investors pays an annual dividend of $1.60 per share and has a dividend yield of 7.8%. Blue Owl Capital pays an annual dividend of $0.90 per share and has a dividend yield of 7.5%. Blue Owl Capital pays out 1,500.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Blue Owl Capital has increased its dividend for 4 consecutive years.
Profitability
This table compares Barings Corporate Investors and Blue Owl Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Barings Corporate Investors | N/A | N/A | N/A |
| Blue Owl Capital | 1.89% | 20.05% | 10.34% |
Institutional & Insider Ownership
35.9% of Blue Owl Capital shares are held by institutional investors. 1.1% of Barings Corporate Investors shares are held by company insiders. Comparatively, 27.4% of Blue Owl Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings for Barings Corporate Investors and Blue Owl Capital, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Barings Corporate Investors | 0 | 0 | 0 | 0 | 0.00 |
| Blue Owl Capital | 1 | 5 | 8 | 2 | 2.69 |
Blue Owl Capital has a consensus target price of $20.78, suggesting a potential upside of 72.83%. Given Blue Owl Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Blue Owl Capital is more favorable than Barings Corporate Investors.
Summary
Blue Owl Capital beats Barings Corporate Investors on 12 of the 14 factors compared between the two stocks.
About Barings Corporate Investors
Babson Capital Corporate Investors trust is a closed ended fixed income mutual fund launched and managed by Barings LLC. It invests in fixed income markets of the United States. The fund seeks to invest in securities of companies operating across diversified sectors. It primarily invests in a portfolio of privately placed, below-investment grade, long term corporate debt obligations. The fund also invests in marketable investment grade debt securities, other marketable debt securities, and marketable common stocks. It was formerly known as Babson Capital Corporate Investors. Babson Capital Corporate Investors trust was formed in 1971 and is domiciled in the United States.
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.