Critical Review: Blue Owl Technology Finance (OTF) vs. Its Peers

Blue Owl Technology Finance (NYSE:OTF) is one of 1,265 public companies in the “Asset Management” industry, but how does it compare to its competitors? We will compare Blue Owl Technology Finance to similar companies based on the strength of its analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Earnings and Valuation

This table compares Blue Owl Technology Finance and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Blue Owl Technology Finance	$779.34 million	$720.37 million	7.05
Blue Owl Technology Finance Competitors	$464.52 million	$205.03 million	-7.76

Blue Owl Technology Finance has higher revenue and earnings than its competitors. Blue Owl Technology Finance is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Blue Owl Technology Finance pays an annual dividend of $1.40 per share and has a dividend yield of 11.7%. Blue Owl Technology Finance pays out 82.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Asset Management” companies pay a dividend yield of 3.3% and pay out 36.6% of their earnings in the form of a dividend.

Profitability

This table compares Blue Owl Technology Finance and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blue Owl Technology Finance	62.89%	6.91%	4.07%
Blue Owl Technology Finance Competitors	261.95%	17.02%	3.11%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Blue Owl Technology Finance and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Owl Technology Finance	0	2	2	0	2.50
Blue Owl Technology Finance Competitors	1115	4925	6436	109	2.44

Blue Owl Technology Finance presently has a consensus price target of $14.00, suggesting a potential upside of 16.76%. As a group, “Asset Management” companies have a potential upside of 58.57%. Given Blue Owl Technology Finance’s competitors higher probable upside, analysts clearly believe Blue Owl Technology Finance has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

23.8% of shares of all “Asset Management” companies are held by institutional investors. 15.8% of shares of all “Asset Management” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Blue Owl Technology Finance competitors beat Blue Owl Technology Finance on 8 of the 14 factors compared.

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.