Reviewing MGT Capital Investments (OTCMKTS:MGTI) & Blue Owl Capital (NYSE:OBDC)

MGT Capital Investments (OTCMKTS:MGTI) and Blue Owl Capital (NYSE:OBDC) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.

Insider and Institutional Ownership

42.8% of Blue Owl Capital shares are owned by institutional investors. 0.0% of MGT Capital Investments shares are owned by company insiders. Comparatively, 0.1% of Blue Owl Capital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares MGT Capital Investments and Blue Owl Capital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGT Capital Investments	$400,000.00	2.17	-$6.13 million	N/A	N/A
Blue Owl Capital	$1.60 billion	3.86	$741.06 million	$1.41	8.56

Blue Owl Capital has higher revenue and earnings than MGT Capital Investments.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGT Capital Investments	0	0	0	0	0.00
Blue Owl Capital	1	2	5	2	2.80

Blue Owl Capital has a consensus target price of $14.81, suggesting a potential upside of 22.67%. Given Blue Owl Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Blue Owl Capital is more favorable than MGT Capital Investments.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MGT Capital Investments	N/A	N/A	N/A
Blue Owl Capital	36.89%	10.58%	4.56%

Risk and Volatility

MGT Capital Investments has a beta of 2.92, meaning that its stock price is 192% more volatile than the S&P 500. Comparatively, Blue Owl Capital has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Summary

Blue Owl Capital beats MGT Capital Investments on 12 of the 13 factors compared between the two stocks.

About MGT Capital Investments

MGT Capital Investments, Inc. engages in cryptocurrency mining business in the United States. The company owns and manages a bitcoin mining facility in LaFayette, Georgia. It also leases space to third parties and self-mining operations; and provides hosting services for third-party owners of miners. The company was incorporated in 1977 and is headquartered in Lafayette, Georgia.

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.