Financial Survey: Blue Owl Capital Co. III (NYSE:OBDE) versus Redwoods Acquisition (NASDAQ:RWOD)

Blue Owl Capital Co. III (NYSE:OBDE) and Redwoods Acquisition (NASDAQ:RWOD) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Blue Owl Capital Co. III and Redwoods Acquisition, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Owl Capital Co. III	0	0	1	0	3.00
Redwoods Acquisition	0	0	0	0	N/A

Blue Owl Capital Co. III currently has a consensus target price of $16.00, indicating a potential upside of 2.30%. Given Blue Owl Capital Co. III’s higher probable upside, research analysts clearly believe Blue Owl Capital Co. III is more favorable than Redwoods Acquisition.

Institutional & Insider Ownership

20.1% of Redwoods Acquisition shares are held by institutional investors. 2.0% of Redwoods Acquisition shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Blue Owl Capital Co. III and Redwoods Acquisition’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 Co. III	$422.83 million	4.55	$271.96 million	$2.49	6.28
Redwoods Acquisition	N/A	N/A	N/A	N/A	N/A

Blue Owl Capital Co. III has higher revenue and earnings than Redwoods Acquisition.

Profitability

This table compares Blue Owl Capital Co. III and Redwoods Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blue Owl Capital Co. III	67.44%	14.48%	7.40%
Redwoods Acquisition	N/A	N/A	N/A

Summary

Blue Owl Capital Co. III beats Redwoods Acquisition on 6 of the 8 factors compared between the two stocks.

About Blue Owl Capital Co. III

Blue Owl Capital Corporation is a specialty finance company focused on lending to U.S. middle-market companies. Blue Owl Capital Corporation is based in NEW YORK.

About Redwoods Acquisition

Redwoods Acquisition Corp. does not have significant operations. The company focuses on effecting a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization, or other similar business combination with one or more businesses or entities. In intends to focus on businesses in the carbon neutral and energy storage industries. The company was incorporated in 2021 and is based in New York, New York.