Critical Contrast: DigitalBridge Group (NYSE:DBRG) & Moelis & Company (NYSE:MC)

Moelis & Company (NYSE:MC) and DigitalBridge Group (NYSE:DBRG) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Valuation and Earnings

This table compares Moelis & Company and DigitalBridge Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Moelis & Company	$854.75 million	6.58	-$24.70 million	$0.53	141.60
DigitalBridge Group	$891.16 million	2.41	$185.28 million	$0.73	16.89

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

Risk and Volatility

Moelis & Company has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, DigitalBridge Group has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500.

Insider and Institutional Ownership

91.5% of Moelis & Company shares are held by institutional investors. Comparatively, 92.7% of DigitalBridge Group shares are held by institutional investors. 6.4% of Moelis & Company shares are held by company insiders. Comparatively, 3.4% of DigitalBridge Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Moelis & Company and DigitalBridge Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Moelis & Company	4.22%	12.15%	4.24%
DigitalBridge Group	21.42%	3.58%	1.72%

Analyst Ratings

This is a breakdown of recent recommendations for Moelis & Company and DigitalBridge Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Moelis & Company	2	5	0	0	1.71
DigitalBridge Group	0	1	6	1	3.00

Moelis & Company presently has a consensus price target of $60.83, suggesting a potential downside of 18.94%. DigitalBridge Group has a consensus price target of $18.13, suggesting a potential upside of 47.00%. Given DigitalBridge Group’s stronger consensus rating and higher possible upside, analysts plainly believe DigitalBridge Group is more favorable than Moelis & Company.

Dividends

Moelis & Company pays an annual dividend of $2.40 per share and has a dividend yield of 3.2%. DigitalBridge Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Moelis & Company pays out 452.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DigitalBridge Group pays out 5.5% of its earnings in the form of a dividend.

Summary

DigitalBridge Group beats Moelis & Company on 11 of the 17 factors compared between the two stocks.

About Moelis & Company

Moelis & Company operates as an investment banking advisory firm. It offers advisory services in the areas of mergers and acquisitions, recapitalizations and restructurings, capital markets transactions, and other corporate finance matters, as well as strategic, capital structure, and private funds advisory. The company offers its services to public multinational corporations, middle market private companies, financial sponsors, entrepreneurs, governments, and sovereign wealth funds. It operates in North and South America, Europe, the Middle East, Asia, and Australia. The company was founded in 2007 and is headquartered in New York, New York.

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.