Comparing Blue Owl Technology Finance (NYSE:OTF) & Franklin Resources (NYSE:BEN)

Franklin Resources (NYSE:BEN) and Blue Owl Technology Finance (NYSE:OTF) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Franklin Resources and Blue Owl Technology Finance, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Resources	2	6	4	0	2.17
Blue Owl Technology Finance	0	3	4	0	2.57

Franklin Resources currently has a consensus price target of $33.10, suggesting a potential upside of 2.03%. Blue Owl Technology Finance has a consensus price target of $13.60, suggesting a potential upside of 31.73%. Given Blue Owl Technology Finance’s stronger consensus rating and higher probable upside, analysts plainly believe Blue Owl Technology Finance is more favorable than Franklin Resources.

Dividends

Franklin Resources pays an annual dividend of $1.32 per share and has a dividend yield of 4.1%. Blue Owl Technology Finance pays an annual dividend of $1.40 per share and has a dividend yield of 13.6%. Franklin Resources pays out 89.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Blue Owl Technology Finance pays out 175.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Franklin Resources has raised its dividend for 45 consecutive years.

Earnings and Valuation

This table compares Franklin Resources and Blue Owl Technology Finance”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franklin Resources	$8.77 billion	1.88	$524.90 million	$1.47	22.07
Blue Owl Technology Finance	$1.15 billion	4.13	$720.37 million	$0.80	12.90

Blue Owl Technology Finance has lower revenue, but higher earnings than Franklin Resources. Blue Owl Technology Finance is trading at a lower price-to-earnings ratio than Franklin Resources, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Franklin Resources has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, Blue Owl Technology Finance has a beta of -0.73, meaning that its share price is 173% less volatile than the S&P 500.

Insider & Institutional Ownership

47.6% of Franklin Resources shares are owned by institutional investors. 23.4% of Franklin Resources shares are owned by company insiders. Comparatively, 0.1% of Blue Owl Technology Finance shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Franklin Resources and Blue Owl Technology Finance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franklin Resources	8.72%	11.55%	4.46%
Blue Owl Technology Finance	28.69%	7.17%	3.86%

Summary

Franklin Resources beats Blue Owl Technology Finance on 10 of the 16 factors compared between the two stocks.

About Franklin Resources

Franklin Resources, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. It launches equity, fixed income, balanced, and multi-asset mutual funds through its subsidiaries. The firm invests in the public equity, fixed income, and alternative markets. Franklin Resources, Inc. was founded in 1947 and is based in San Mateo, California with an additional office in Calgary, Canada; Dubai, United Arab Emirates; Edinburgh, United Kingdom; Fort Lauderdale, United States; Hyderabad, India; London, United Kingdom; Rancho Cordova, United states; Shanghai, China; Singapore; Stamford, United States; and Vienna, Austria.

About Blue Owl Technology Finance

Blue Owl Technology Finance Corp. is a specialty finance company focused on making debt and equity investments to U.S. technology-related companies, with a strategic focus on software. Blue Owl Technology Finance Corp. is based in NEW YORK.