PhenixFIN (NYSE:PFX – Get Free Report) and Blue Owl Capital (NYSE:OBDC – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.
Insider & Institutional Ownership
43.3% of PhenixFIN shares are owned by institutional investors. Comparatively, 42.8% of Blue Owl Capital shares are owned by institutional investors. 25.2% of PhenixFIN 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, hedge funds and large money managers believe a stock will outperform the market over the long term.
Dividends
PhenixFIN pays an annual dividend of $0.48 per share and has a dividend yield of 1.0%. Blue Owl Capital pays an annual dividend of $1.24 per share and has a dividend yield of 11.1%. PhenixFIN pays out 19.9% of its earnings in the form of a dividend. Blue Owl Capital pays out 221.4% 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 2 consecutive years. Blue Owl Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| PhenixFIN | 72.98% | 2.95% | 1.68% |
| Blue Owl Capital | 16.99% | 9.49% | 4.19% |
Earnings & Valuation
This table compares PhenixFIN and Blue Owl Capital”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PhenixFIN | $14.16 million | 6.28 | $18.62 million | $2.41 | 19.09 |
| Blue Owl Capital | $374.81 million | 14.67 | $800.36 million | $0.56 | 19.91 |
Blue Owl Capital has higher revenue and earnings than PhenixFIN. PhenixFIN is trading at a lower price-to-earnings ratio than Blue Owl Capital, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
PhenixFIN has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Blue Owl Capital has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations for PhenixFIN and Blue Owl Capital, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PhenixFIN | 0 | 0 | 0 | 1 | 4.00 |
| Blue Owl Capital | 0 | 3 | 4 | 1 | 2.75 |
Blue Owl Capital has a consensus target price of $13.00, indicating a potential upside of 16.62%. Given Blue Owl Capital’s higher possible upside, analysts plainly believe Blue Owl Capital is more favorable than PhenixFIN.
Summary
Blue Owl Capital beats PhenixFIN on 11 of the 17 factors compared between the two stocks.
About PhenixFIN
PhenixFIN Corporation is a business development company. The firm seeks to invest in privately negotiated debt and equity securities of small and middle market companies. It primarily invests in the following sectors: business services; buildings and real estate; automobile; oil and gas; aerospace and defense; home and office furnishings, housewares, and durable consumer products; healthcare, education and childcare; personal, food, and miscellaneous services; retail stores, diversified or conglomerate manufacturing; telecommunications; mining, steel, iron, and non-precious metals; leisure, amusement, motion pictures, and entertainment; chemicals, plastics, and rubber; finance; personal and nondurable consumer products (manufacturing only); beverage, food, and tobacco; containers, packaging, and glass; structure finance securities; machinery (non-agriculture, non-construction, non-electric); diversified or conglomerate service; restaurant and franchise; electronics; and cargo transport. The fund seeks to invest in companies located in North America. The fund targets private debt transactions in companies with enterprise values or asset values between $25 million and $250 million. The fund seeks to invest in companies with debt investment values between $10 million and $50 million. It exits its investments between three years and seven years; it holds most of its investments to maturity or repayment, but may realize or sell some investments earlier. The fund may take a board seat on its investee companies and can also offer managerial assistance to certain portfolio companies. It structures its investments as first lien senior secured loans, second lien senior secured loans, senior secured notes, senior subordinated notes, subordinate notes, unitranche loans, and seeks warrants or other equity participation. The fund may co-invest in privately negotiated transactions under certain conditions. PhenixFIN Corporation was founded in 2010 and is headquartered in New York, New York.
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.
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