When it comes to making investment decisions, it is crucial to carefully evaluate your options. In this analysis, we will compare two small-cap companies in the auto/tires/trucks industry – ECD Automotive Design (NASDAQ:ECDA) and Blue Owl Capital Co. III (NYSE:OBDE). We will examine their dividends, profitability, valuation, analyst recommendations, earnings, risk, and institutional ownership to determine which one may be the more promising investment opportunity.
In terms of profitability, the numbers tell a clear story:
ECD Automotive Design – N/A
Blue Owl Capital Co. III – Net margins: 67.44%, Return on equity: 14.48%, Return on assets: 7.40%
Institutional and Insider Ownership
ECD Automotive Design – Institutional ownership: 94.8%, Insider ownership: 16.3%
Substantial institutional ownership is often viewed as a positive indicator for long-term growth potential.
Valuation & Earnings
ECD Automotive Design – Gross revenue: $15.12 million, Price/Sales ratio: 0.53
Blue Owl Capital Co. III – Gross revenue: $422.83 million, Price/Sales ratio: 4.51, Net income: $271.96 million, Earnings per share: $2.49, Price/Earnings ratio: 6.22
It is evident that Blue Owl Capital Co. III has higher revenue and earnings compared to ECD Automotive Design.
Analyst Ratings
ECD Automotive Design – Ratings: 1 Buy rating, consensus price target of $9.00 (potential upside of 650%)
Blue Owl Capital Co. III – Ratings: 1 Buy rating, consensus price target of $16.00 (potential upside of 3.29%)
Based on analyst ratings, ECD Automotive Design has a higher potential upside, making it a more favourable option according to equities research analysts.
In summary, in 5 out of 8 factors compared, Blue Owl Capital Co. III emerges as the better option when compared to ECD Automotive Design.
About ECD Automotive Design
ECD Automotive Design, Inc. is engaged in the manufacture and sale of customized Land Rover vehicles in the United States, as well as providing repair, upgrade services, and extended warranties. The company was established in 2013 and is headquartered in Kissimmee, Florida.
About Blue Owl Capital Co. III
Blue Owl Capital Corporation focuses on lending to U.S. middle-market companies. The company is headquartered in New York.
In conclusion, while both companies have their strengths, the detailed comparison indicates that Blue Owl Capital Co. III is the more favourable option based on the factors analysed.
If you are considering investing in ECD Automotive Design or Blue Owl Capital Co. III, it is essential to conduct further research and seek advice from a financial advisor to make an informed decision.