Critical Analysis: HIVE Digital Technologies (NASDAQ:HIVE) versus Blue Owl Capital (NYSE:OBDC)

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

Volatility & Risk

Blue Owl Capital has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, HIVE Digital Technologies has a beta of 3.61, indicating that its share price is 261% more volatile than the S&P 500.

Valuation & Earnings

This table compares Blue Owl Capital and HIVE Digital Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Owl Capital	$1.85 billion	3.11	$800.36 million	$1.24	9.30
HIVE Digital Technologies	$257.14 million	2.27	-$3.00 million	($0.60)	-3.83

Blue Owl Capital has higher revenue and earnings than HIVE Digital Technologies. HIVE Digital Technologies 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

42.8% of Blue Owl Capital shares are owned by institutional investors. Comparatively, 24.4% of HIVE Digital Technologies shares are owned by institutional investors. 0.1% of Blue Owl Capital shares are owned by insiders. Comparatively, 9.4% of HIVE Digital Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Blue Owl Capital and HIVE Digital Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blue Owl Capital	33.89%	10.07%	4.34%
HIVE Digital Technologies	-47.89%	-19.81%	-17.54%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Blue Owl Capital and HIVE Digital Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Owl Capital	0	3	5	2	2.90
HIVE Digital Technologies	1	2	6	0	2.56

Blue Owl Capital currently has a consensus target price of $14.06, indicating a potential upside of 21.96%. HIVE Digital Technologies has a consensus target price of $6.39, indicating a potential upside of 177.78%. Given HIVE Digital Technologies’ higher possible upside, analysts clearly believe HIVE Digital Technologies is more favorable than Blue Owl Capital.

Summary

Blue Owl Capital beats HIVE Digital Technologies on 11 of the 15 factors compared between the two stocks.

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.

About HIVE Digital Technologies

HIVE Digital Technologies Ltd. operates as a cryptocurrency mining company in Canada, Sweden, and Iceland. The company engages in the mining and sale of digital currencies, including Ethereum Classic, Bitcoin, and other coins. It also operates data centers; and offers infrastructure solutions. The company was formerly known as HIVE Blockchain Technologies Ltd. and changed its name to HIVE Digital Technologies Ltd. in July 2023. HIVE Digital Technologies Ltd. was incorporated in 1987 and is headquartered in Vancouver, Canada.