Reviewing T. Rowe Price Group (NASDAQ:TROW) and Blue Owl Capital (NYSE:OWL)

T. Rowe Price Group (NASDAQ:TROW) and Blue Owl Capital (NYSE:OWL) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.

Volatility & Risk

T. Rowe Price Group has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, Blue Owl Capital has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.

Profitability

This table compares T. Rowe Price Group and Blue Owl Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
T. Rowe Price Group	28.72%	19.77%	15.04%
Blue Owl Capital	2.88%	19.64%	10.38%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for T. Rowe Price Group and Blue Owl Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
T. Rowe Price Group	4	10	1	1	1.94
Blue Owl Capital	0	4	11	1	2.81

T. Rowe Price Group currently has a consensus price target of $107.54, suggesting a potential upside of 4.93%. Blue Owl Capital has a consensus price target of $22.38, suggesting a potential upside of 37.29%. Given Blue Owl Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Blue Owl Capital is more favorable than T. Rowe Price Group.

Dividends

T. Rowe Price Group pays an annual dividend of $5.08 per share and has a dividend yield of 5.0%. Blue Owl Capital pays an annual dividend of $0.90 per share and has a dividend yield of 5.5%. T. Rowe Price Group pays out 56.8% of its earnings in the form of a dividend. Blue Owl Capital pays out 1,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. T. Rowe Price Group has increased its dividend for 39 consecutive years and Blue Owl Capital has increased its dividend for 4 consecutive years.

Earnings and Valuation

This table compares T. Rowe Price Group and Blue Owl Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
T. Rowe Price Group	$7.09 billion	3.17	$2.10 billion	$8.95	11.45
Blue Owl Capital	$2.30 billion	11.01	$109.58 million	$0.09	181.17

T. Rowe Price Group has higher revenue and earnings than Blue Owl Capital. T. Rowe Price Group 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.

Insider and Institutional Ownership

73.4% of T. Rowe Price Group shares are held by institutional investors. Comparatively, 35.9% of Blue Owl Capital shares are held by institutional investors. 2.0% of T. Rowe Price Group shares are held by insiders. Comparatively, 27.2% of Blue Owl Capital shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

T. Rowe Price Group beats Blue Owl Capital on 10 of the 17 factors compared between the two stocks.

About T. Rowe Price Group

T. Rowe Price Group, Inc. is a publicly owned investment manager. The firm provides its services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions. It launches and manages equity and fixed income mutual funds. The firm invests in the public equity and fixed income markets across the globe. It employs fundamental and quantitative analysis with a bottom-up approach. The firm utilizes in-house and external research to make its investments. It employs socially responsible investing with a focus on environmental, social, and governance issues. It makes investment in late-stage venture capital transactions and usually invests between $3 million and $5 million. The firm was previously known as T. Rowe Group, Inc. and T. Rowe Price Associates, Inc. T. Rowe Price Group, Inc. was founded in 1937 and is based in Baltimore, Maryland, with additional offices in Colorado Springs, Colorado; Owings Mills, Maryland; San Francisco, California; New York, New York; Philadelphia, Pennsylvania; Tampa, Florida; Toronto, Ontario; Hellerup, Denmark; Amsterdam, The Netherlands; Luxembourg, Grand Duchy of Luxembourg; Zurich, Switzerland; Dubai, United Arab Emirates; London, United Kingdom; Sydney, New South Wales; Hong Kong; Tokyo, Japan; Singapore; Frankfurt, Shanghai, China; Germany, Madrid, Spain, Milan, Italy, Stockholm, Sweden, Melbourne, Australia, Amsterdam, Netherlands and Washington, DC.

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.