Head to Head Contrast: Blue Owl Technology Finance (NYSE:OTF) and Ameriprise Financial (NYSE:AMP)

Ameriprise Financial (NYSE:AMP) and Blue Owl Technology Finance (NYSE:OTF) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Valuation & Earnings

This table compares Ameriprise Financial and Blue Owl Technology Finance”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ameriprise Financial	$18.48 billion	2.44	$3.56 billion	$41.46	12.07
Blue Owl Technology Finance	$1.15 billion	3.74	$720.37 million	$0.80	11.68

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

Insider and Institutional Ownership

84.0% of Ameriprise Financial shares are held by institutional investors. 0.6% of Ameriprise Financial shares are held by insiders. Comparatively, 0.1% of Blue Owl Technology Finance shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Ameriprise Financial pays an annual dividend of $6.80 per share and has a dividend yield of 1.4%. Blue Owl Technology Finance pays an annual dividend of $1.40 per share and has a dividend yield of 15.0%. Ameriprise Financial pays out 16.4% of its earnings in the form of a dividend. 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. Ameriprise Financial has increased its dividend for 21 consecutive years.

Analyst Recommendations

This is a summary of current ratings for Ameriprise Financial and Blue Owl Technology Finance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ameriprise Financial	1	4	5	1	2.55
Blue Owl Technology Finance	0	3	4	0	2.57

Ameriprise Financial currently has a consensus target price of $558.00, suggesting a potential upside of 11.48%. Blue Owl Technology Finance has a consensus target price of $13.60, suggesting a potential upside of 45.53%. Given Blue Owl Technology Finance’s stronger consensus rating and higher possible upside, analysts plainly believe Blue Owl Technology Finance is more favorable than Ameriprise Financial.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ameriprise Financial	20.24%	64.19%	2.15%
Blue Owl Technology Finance	28.69%	7.17%	3.86%

Risk and Volatility

Ameriprise Financial has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Blue Owl Technology Finance has a beta of -0.58, suggesting that its share price is 158% less volatile than the S&P 500.

Summary

Ameriprise Financial beats Blue Owl Technology Finance on 12 of the 18 factors compared between the two stocks.

About Ameriprise Financial

Ameriprise Financial, Inc., together with its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. It operates through four segments: Advice & Wealth Management, Asset Management, Retirement & Protection Solutions, and Corporate & Other. The Advice & Wealth Management segment provides financial planning and advice; brokerage products and services for retail and institutional clients; discretionary and non-discretionary investment advisory accounts; mutual funds; insurance and annuities products; cash management and banking products; and face-amount certificates. The Asset Management segment offers investment management, advice, and products to retail, high net worth, and institutional clients through third-party financial institutions, advisor networks, direct retail, and its institutional sales force under the Columbia Threadneedle Investments brand name. This segment products include U.S. mutual funds and their non-U.S. equivalents, exchange-traded funds, variable product funds underlying insurance, and annuity separate accounts; and institutional asset management products, such as traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds, collective funds, and property and infrastructure funds. The Retirement & Protection Solutions segment provides variable annuity products, as well as life and disability income insurance products to retail clients. The company was formerly known as American Express Financial Corporation and changed its name to Ameriprise Financial, Inc. in September 2005. Ameriprise Financial, Inc. was founded in 1894 and is headquartered in Minneapolis, Minnesota.

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.