AssetMark Financial (NYSE:AMK – Get Free Report) and Blue Owl Capital (NYSE:OWL – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.
Risk and Volatility
AssetMark Financial has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Blue Owl Capital has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500.
Profitability
This table compares AssetMark Financial and Blue Owl Capital’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
AssetMark Financial | 17.38% | 12.74% | 9.76% |
Blue Owl Capital | 3.14% | 17.31% | 10.57% |
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
AssetMark Financial | 0 | 3 | 0 | 1 | 2.50 |
Blue Owl Capital | 0 | 2 | 9 | 0 | 2.82 |
AssetMark Financial presently has a consensus target price of $33.75, indicating a potential downside of 0.12%. Blue Owl Capital has a consensus target price of $19.48, indicating a potential upside of 2.30%. Given Blue Owl Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Blue Owl Capital is more favorable than AssetMark Financial.
Earnings and Valuation
This table compares AssetMark Financial and Blue Owl Capital’s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
AssetMark Financial | $708.50 million | 3.55 | $123.12 million | $1.64 | 20.60 |
Blue Owl Capital | $1.73 billion | 15.71 | $54.34 million | $0.10 | 190.42 |
AssetMark Financial has higher earnings, but lower revenue than Blue Owl Capital. AssetMark Financial 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.
Institutional and Insider Ownership
28.6% of AssetMark Financial shares are owned by institutional investors. Comparatively, 35.9% of Blue Owl Capital shares are owned by institutional investors. 2.0% of AssetMark Financial shares are owned by insiders. Comparatively, 33.4% of Blue Owl Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Blue Owl Capital beats AssetMark Financial on 11 of the 15 factors compared between the two stocks.
About AssetMark Financial
AssetMark Financial Holdings, Inc., together with its subsidiaries, provides wealth management platform in the United States. It offers an open-architecture product platform, as well as client advice, asset allocation options, practice management, support services, and technology solutions to the financial adviser channel. The company also provides flexible technology platform for advisers for accessing a range of automated tools and capabilities, including new account opening, portfolio construction, streamlined financial planning, customer billing, investor reporting, progress-to-goal analysis, and client activity tracking; adviser services; curated investment platform; and integrated financial planning tools. In addition, it provides SaaS-based financial planning, wellness, and client digital engagement solutions; offers mutual funds; custodial recordkeeping services primarily to investor clients of registered investment advisers; wealth management solutions for individual investors; and overlay management, investment solutions, flexible desktop technology, and a manager marketplace. The company serves independent advisers who provide wealth management advice to the U.S. investors. AssetMark Financial Holdings, Inc. was founded in 1996 and is headquartered in Concord, California. AssetMark Financial Holdings, Inc. operates as a subsidiary of Huatai International Investment Holdings Limited.
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.
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