Head-To-Head Contrast: Franklin Resources (NYSE:BEN) and Blue Owl Technology Finance (NYSE:OTF)

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

Risk and Volatility

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

Profitability

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

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

Insider and Institutional Ownership

47.6% of Franklin Resources shares are held by institutional investors. 0.1% of Blue Owl Technology Finance shares are held by insiders. Comparatively, 23.4% of Franklin Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Blue Owl Technology Finance pays an annual dividend of $1.40 per share and has a dividend yield of 13.6%. Franklin Resources pays an annual dividend of $1.32 per share and has a dividend yield of 4.1%. 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 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. Franklin Resources has increased its dividend for 45 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Blue Owl Technology Finance and Franklin Resources, as reported by MarketBeat.com.

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

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

Earnings & Valuation

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

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

Blue Owl Technology Finance has higher earnings, but lower revenue 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.

Summary

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

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.

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.