Blue Owl Capital (NYSE:OWL) & Grupo Aval Acciones y Valores (NYSE:AVAL) Critical Review

Blue Owl Capital (NYSE:OWL) and Grupo Aval Acciones y Valores (NYSE:AVAL) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Insider & Institutional Ownership

35.9% of Blue Owl Capital shares are owned by institutional investors. Comparatively, 0.2% of Grupo Aval Acciones y Valores shares are owned by institutional investors. 25.7% 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 is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Blue Owl Capital and Grupo Aval Acciones y Valores, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Owl Capital	1	6	7	1	2.53
Grupo Aval Acciones y Valores	0	2	0	0	2.00

Blue Owl Capital currently has a consensus target price of $14.04, suggesting a potential upside of 39.33%. Given Blue Owl Capital’s stronger consensus rating and higher possible upside, research analysts plainly believe Blue Owl Capital is more favorable than Grupo Aval Acciones y Valores.

Dividends

Blue Owl Capital pays an annual dividend of $0.92 per share and has a dividend yield of 9.1%. Grupo Aval Acciones y Valores pays an annual dividend of $0.14 per share and has a dividend yield of 3.3%. Blue Owl Capital pays out 766.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Grupo Aval Acciones y Valores pays out 37.8% of its earnings in the form of a dividend. Blue Owl Capital has increased its dividend for 4 consecutive years. Blue Owl Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Blue Owl Capital and Grupo Aval Acciones y Valores”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Owl Capital	$2.87 billion	5.46	$78.83 million	$0.12	83.95
Grupo Aval Acciones y Valores	$6.76 billion	0.74	$344.37 million	$0.37	11.46

Grupo Aval Acciones y Valores has higher revenue and earnings than Blue Owl Capital. Grupo Aval Acciones y Valores 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.

Profitability

This table compares Blue Owl Capital and Grupo Aval Acciones y Valores’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blue Owl Capital	2.96%	21.97%	10.79%
Grupo Aval Acciones y Valores	4.99%	6.24%	0.62%

Risk & Volatility

Blue Owl Capital has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Grupo Aval Acciones y Valores has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Summary

Blue Owl Capital beats Grupo Aval Acciones y Valores on 13 of the 18 factors compared between the two stocks.

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.

About Grupo Aval Acciones y Valores

Grupo Aval Acciones y Valores S.A. provides a range of financial services and products to public and private sector customers in Colombia and Central America. It offers traditional deposit services and products, including checking accounts, savings accounts, time deposits, and other deposits. The company also provides commercial loans comprising general purpose loans, working capital loans, leases, loans funded by development banks, corporate credit cards, and overdraft loans; consumer loans, such as payroll loans, personal loans, automobile and other vehicle loans, credit cards, overdrafts, leases, and general purpose loans; and microcredit and mortgage loans. In addition, the company offers pension and severance fund management services; investment banking, including services relating to capital markets, mergers and acquisitions, and project finance transactions; mobile and online banking services; and bancassurance, insurance, trust, bonded warehousing and brokerage transactions, real estate escrow services, merchandise and document storage and deposit, customs agency, cargo management, surety bond and merchandise distribution services, and payment and collection services. Further, it is involved in equity investments in various sectors, including infrastructure, energy and gas, agribusiness, and hospitality; and treasury operations. The company was incorporated in 1994 and is headquartered in Bogotá, Colombia. Grupo Aval Acciones y Valores S.A.