OTF vs HTGC vs ARCC vs OBDC vs GBDC

For growth investors, Blue Owl Technology Finance Corp.

(OTF) is the stronger pick with 99. 8% revenue growth year-over-year, versus 27. 0% for Hercules Capital, Inc. (HTGC). Blue Owl Technology Finance Corp. (OTF) offers the better valuation at 6. 3x trailing P/E (8. 5x forward), making it the more compelling value choice. Analysts rate Blue Owl Technology Finance Corp. (OTF) a "Buy" — based on 4 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Blue Owl Technology Finance Corp.

(OTF) is the cheapest at 6. 3x versus Ares Capital Corporation at 10. 2x. On forward P/E, Hercules Capital, Inc. is actually cheaper at 8. 4x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Golub Capital BDC, Inc. wins at 0. 31x versus Blue Owl Capital Corporation's 1. 92x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Ares Capital Corporation (ARCC) delivered a total return of +47.

0%, compared to -24. 0% for Blue Owl Technology Finance Corp. (OTF). Over 10 years, the gap is even starker: HTGC returned +169. 5% versus OTF's -24. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Golub Capital BDC, Inc.

(GBDC) is the lower-risk stock at 0. 61β versus Blue Owl Capital Corporation's 0. 81β — meaning OBDC is approximately 33% more volatile than GBDC relative to the S&P 500. On balance sheet safety, Blue Owl Technology Finance Corp. (OTF) carries a lower debt/equity ratio of 78% versus 126% for Blue Owl Capital Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Blue Owl Technology Finance Corp.

(OTF) is pulling ahead at 99. 8% versus 27. 0% for Hercules Capital, Inc. (HTGC). On earnings-per-share growth, the picture is similar: Blue Owl Technology Finance Corp. grew EPS 15. 8% year-over-year, compared to -23. 8% for Ares Capital Corporation. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Blue Owl Technology Finance Corp.

(OTF) is the more profitable company, earning 67. 1% net margin versus 37. 4% for Blue Owl Capital Corporation — meaning it keeps 67. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: GBDC leads at 78. 9% versus 66. 7% for HTGC. At the gross margin level — before operating expenses — HTGC leads at 87. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Golub Capital BDC, Inc. (GBDC) is the more undervalued stock at a PEG of 0. 31x versus Blue Owl Capital Corporation's 1. 92x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Hercules Capital, Inc. (HTGC) trades at 8. 4x forward P/E versus 9. 9x for Ares Capital Corporation — 1. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for OTF: 45. 1% to $16. 00.

All stocks in this comparison pay dividends.

Blue Owl Capital Corporation (OBDC) offers the highest yield at 13. 0%, versus 2. 0% for Ares Capital Corporation (ARCC).

For long-horizon retirement investors, Hercules Capital, Inc.

(HTGC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 68), 8. 6% yield, +169. 5% 10Y return). Both have compounded well over 10 years (HTGC: +169. 5%, OBDC: +40. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.