Moelis & Company (NYSE:MC) vs. DigitalBridge Group (NYSE:DBRG) Head-To-Head Review

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

Valuation & Earnings

This table compares DigitalBridge Group and Moelis & Company”s gross 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	1.43	$185.28 million	$0.73	16.89
Moelis & Company	$854.75 million	6.58	-$24.70 million	$0.53	141.57

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.

Profitability

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

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

Dividends

DigitalBridge Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Moelis & Company pays an annual dividend of $2.40 per share and has a dividend yield of 3.2%. DigitalBridge Group pays out 5.5% of its earnings in the form of a dividend. 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.

Analyst Ratings

This is a summary of current ratings and target prices for DigitalBridge Group and Moelis & Company, as reported by MarketBeat.

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

DigitalBridge Group currently has a consensus price target of $18.13, indicating a potential upside of 47.00%. Moelis & Company has a consensus price target of $60.83, indicating a potential downside of 18.92%. Given DigitalBridge Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe DigitalBridge Group is more favorable than Moelis & Company.

Volatility & Risk

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

Institutional and Insider Ownership

92.7% of DigitalBridge Group shares are owned by institutional investors. Comparatively, 91.5% of Moelis & Company shares are owned by institutional investors. 3.4% of DigitalBridge Group shares are owned by insiders. Comparatively, 6.4% of Moelis & Company shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

DigitalBridge Group beats Moelis & Company on 11 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 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.