Blue Owl Capital Corporation (OBDC) vs StepStone Group Inc. (STEP)

Blue Owl Capital Corporation and StepStone Group Inc. are both Asset Management companies. Blue Owl Capital Corporation and StepStone Group Inc. are of similar size ($5.3B and $5.2B). StepStone Group Inc. has negative trailing earnings, so its P/E is not meaningful; Blue Owl Capital Corporation trades at 15.9×. StepStone Group Inc. grew revenue faster over the last twelve months: 48.5% against −8.90%. Blue Owl Capital Corporation has the higher net margin (20.8% vs −30.5%) and the higher return on invested capital (2.98% vs −42.5%). Both pay a dividend; Blue Owl Capital Corporation yields more (12.8% vs 4.03%). Across the 18 metrics below, Blue Owl Capital Corporation leads on 14 and StepStone Group Inc. on 4.

Valuation

Metric OBDC STEP Asset Management median
P/E 15.91 n/m 13.38
P/S 3.25 1.74 2.99
P/B 0.76 3.60 0.91
Price to free cash flow 2.22 n/m 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 6.28% (18.11%) 4.67%
Free cash flow yield 45.06% (12.57%) 4.85%

Profitability

Metric OBDC STEP Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 75.08% (58.22%) 27.27%
Net margin 20.79% (30.53%) 11.89%
Free cash flow margin 146.54% (21.88%) 5.96%
Return on equity 4.66% (55.72%) 4.57%
Return on assets 2.05% (9.77%) 1.40%
Return on invested capital 2.98% (42.51%) 2.12%

Growth

Metric OBDC STEP Asset Management median
Revenue growth (TTM) (8.90%) 48.46% 7.26%
EPS growth (last fiscal year) (18.95%) (169.05%) (5.64%)
Revenue growth, 5-year CAGR 18.17% 20.41% 11.84%
Net income growth, 5-year CAGR 10.10% 0.00% 0.00%

Health

Metric OBDC STEP Asset Management median
Debt to equity 1.16 1.50 0.40
Current ratio 0.85 0.19 1.23
Net debt to EBITDA 6.51 (0.08) 1.06

Dividend

Metric OBDC STEP Asset Management median
Dividend yield 12.75% 4.03% 6.43%
Payout ratio 2.03 — 0.91

Size

Metric OBDC STEP Asset Management median
Market cap 5.33b 5.17b 692.54m

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