Contrasting Patria Investments (NYSE:PAX) & Blue Owl Capital (NYSE:OWL)

Blue Owl Capital (NYSE:OWL) and Patria Investments (NYSE:PAX) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Insider & Institutional Ownership

35.8% of Blue Owl Capital shares are owned by institutional investors. Comparatively, 96.3% of Patria Investments shares are owned by institutional investors. 33.5% of Blue Owl Capital shares are owned by company insiders. Comparatively, 58.1% of Patria Investments shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Blue Owl Capital has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Patria Investments has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Dividends

Blue Owl Capital pays an annual dividend of $0.72 per share and has a dividend yield of 3.5%. Patria Investments pays an annual dividend of $0.60 per share and has a dividend yield of 5.4%. Blue Owl Capital pays out 423.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Patria Investments pays out 120.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Patria Investments is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Blue Owl Capital and Patria Investments, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Owl Capital	0	4	9	0	2.69
Patria Investments	0	0	1	0	3.00

Blue Owl Capital currently has a consensus target price of $26.48, suggesting a potential upside of 27.31%. Patria Investments has a consensus target price of $14.00, suggesting a potential upside of 26.81%. Given Blue Owl Capital’s higher possible upside, analysts clearly believe Blue Owl Capital is more favorable than Patria Investments.

Earnings & Valuation

This table compares Blue Owl Capital and Patria Investments”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Owl Capital	$2.30 billion	13.94	$109.58 million	$0.17	122.35
Patria Investments	$374.20 million	1.76	$73.40 million	$0.50	22.08

Blue Owl Capital has higher revenue and earnings than Patria Investments. Patria Investments 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 Patria Investments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blue Owl Capital	4.77%	20.82%	11.52%
Patria Investments	19.91%	38.68%	15.84%

Summary

Patria Investments beats Blue Owl Capital on 9 of the 16 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 Patria Investments

Patria Investments Limited operates as a private market investment firm focused on investing in Latin America. The company offers asset management services to investors focusing on private equity funds, infrastructure development funds, co-investments funds, constructivist equity funds, and real estate and credit funds. Patria Investments Limited was founded in 1994 and is headquartered in Grand Cayman, the Cayman Islands.