Blue Owl Technology Finance Corp. (OTF) vs StepStone Group Inc. (STEP)

Blue Owl Technology Finance Corp. and StepStone Group Inc. are both Asset Management companies. StepStone Group Inc. is the larger, with a market value of $5.3B against $4.7B — 1.1× the size. StepStone Group Inc. has negative trailing earnings, so its P/E is not meaningful; Blue Owl Technology Finance Corp. trades at 12.9×. Blue Owl Technology Finance Corp. grew revenue faster over the last twelve months: 55.6% against 48.5%. Blue Owl Technology Finance Corp. has the higher net margin (28.7% vs −30.5%) and the higher return on invested capital (2.94% vs −42.5%). Across the 18 metrics below, Blue Owl Technology Finance Corp. leads on 12 and StepStone Group Inc. on 6.

Valuation

Metric OTF STEP Asset Management median
P/E 12.89 n/m 14.62
P/S 3.64 1.81 2.97
P/B 0.63 3.75 0.94
Price to free cash flow n/m n/m 8.93
EV/EBITDA 11.08 n/m 10.32
EV/Sales 8.95 2.18 5.72
Earnings yield 7.76% (17.40%) 4.53%
Free cash flow yield (32.87%) (12.08%) 4.65%

Profitability

Metric OTF STEP Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 82.41% (58.22%) 33.03%
Net margin 28.70% (30.53%) 13.53%
Free cash flow margin (119.50%) (21.88%) 12.44%
Return on equity 4.83% (55.72%) 4.83%
Return on assets 2.67% (9.77%) 1.57%
Return on invested capital 2.94% (42.51%) 3.04%

Growth

Metric OTF STEP Asset Management median
Revenue growth (TTM) 55.63% 48.46% 6.97%
EPS growth (last fiscal year) 15.79% (169.05%) —
Revenue growth, 5-year CAGR 45.91% 20.41% 12.13%
Net income growth, 5-year CAGR 42.61% 0.00% 0.00%

Health

Metric OTF STEP Asset Management median
Debt to equity 0.95 1.50 0.42
Current ratio 0.05 0.19 1.28
Net debt to EBITDA 6.31 (0.08) 1.06

Dividend

Metric OTF STEP Asset Management median
Dividend yield — 2.50% 6.92%
Payout ratio — 4.77 0.77

Size

Metric OTF STEP Asset Management median
Market cap 4.70b 5.26b 721.34m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack