Analyzing DigitalBridge Group (NYSE:DBRG) & BrightSphere Investment Group (NYSE:BSIG)

DigitalBridge Group (NYSE:DBRG) and BrightSphere Investment Group (NYSE:BSIG) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.

Dividends

DigitalBridge Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. BrightSphere Investment Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. DigitalBridge Group pays out 2.6% of its earnings in the form of a dividend. BrightSphere Investment Group pays out 2.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Volatility & Risk

DigitalBridge Group has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500. Comparatively, BrightSphere Investment Group has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for DigitalBridge Group and BrightSphere Investment Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DigitalBridge Group	0	0	6	1	3.14
BrightSphere Investment Group	0	1	1	0	2.50

DigitalBridge Group currently has a consensus price target of $20.54, suggesting a potential upside of 43.71%. BrightSphere Investment Group has a consensus price target of $23.00, suggesting a potential downside of 11.54%. Given DigitalBridge Group’s stronger consensus rating and higher probable upside, research analysts clearly believe DigitalBridge Group is more favorable than BrightSphere Investment Group.

Insider and Institutional Ownership

92.7% of DigitalBridge Group shares are owned by institutional investors. Comparatively, 98.7% of BrightSphere Investment Group shares are owned by institutional investors. 3.4% of DigitalBridge Group shares are owned by insiders. Comparatively, 27.7% of BrightSphere Investment Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares DigitalBridge Group and BrightSphere Investment Group’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DigitalBridge Group	$1.50 billion	1.65	$185.28 million	$1.55	9.22
BrightSphere Investment Group	$426.60 million	2.30	$65.80 million	$1.64	15.85

DigitalBridge Group has higher revenue and earnings than BrightSphere Investment Group. DigitalBridge Group is trading at a lower price-to-earnings ratio than BrightSphere Investment Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares DigitalBridge Group and BrightSphere Investment Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DigitalBridge Group	26.64%	3.14%	1.14%
BrightSphere Investment Group	15.53%	438.16%	14.34%

Summary

DigitalBridge Group beats BrightSphere Investment Group on 9 of the 17 factors compared between the two stocks.

About DigitalBridge Group

DigitalBridge is an infrastructure investment firm specializing in digital infrastructure assets. They provide services to institutional investors. They primarily invest in data centers, cell towers, fiber networks, small cells, and edge infrastructure. DigitalBridge Group, Inc. was founded in 1991 and is headquartered in Boca Raton, Florida with additional offices in Los Angles, California, and New York New York.

About BrightSphere Investment Group

BrightSphere Investment Group Inc. is a publically owned asset management holding company. The firm provides its services to individuals and institutions. It manages separate client focused portfolios through its subsidiaries. The firm also launches equity mutual funds for its clients. It invests in public equity, fixed income, and alternative investment markets through its subsidiaries. The firm was founded in 1980 is based Boston, Massachusetts. It was formally known as BrightSphere Investment Group plc. BrightSphere Investment Group Inc. was formed in 1980 and is based in Boston, Massachusetts.