DigitalBridge Group (NYSE:DBRG) & Chimera Investment (NYSE:CIM) Financial Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chimera Investment	4.27%	7.36%	1.36%
DigitalBridge Group	18.57%	4.78%	2.29%

Institutional and Insider Ownership

48.4% of Chimera Investment shares are held by institutional investors. Comparatively, 92.7% of DigitalBridge Group shares are held by institutional investors. 1.5% of Chimera Investment shares are held by company insiders. Comparatively, 3.6% of DigitalBridge Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Chimera Investment has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500. Comparatively, DigitalBridge Group has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500.

Dividends

Chimera Investment pays an annual dividend of $1.48 per share and has a dividend yield of 11.4%. DigitalBridge Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Chimera Investment pays out -370.0% of its earnings in the form of a dividend. DigitalBridge Group pays out 66.7% 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. Chimera Investment has raised its dividend for 1 consecutive years. Chimera Investment is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Chimera Investment and DigitalBridge Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chimera Investment	$760.95 million	1.41	$176.07 million	($0.40)	-32.35
DigitalBridge Group	$228.14 million	11.37	$70.52 million	$0.06	236.60

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

Analyst Recommendations

This is a breakdown of current recommendations for Chimera Investment and DigitalBridge Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chimera Investment	1	2	1	0	2.00
DigitalBridge Group	1	2	5	2	2.80

Chimera Investment presently has a consensus price target of $15.25, suggesting a potential upside of 17.84%. DigitalBridge Group has a consensus price target of $16.93, suggesting a potential upside of 19.25%. Given DigitalBridge Group’s stronger consensus rating and higher probable upside, analysts plainly believe DigitalBridge Group is more favorable than Chimera Investment.

Summary

DigitalBridge Group beats Chimera Investment on 11 of the 18 factors compared between the two stocks.

About Chimera Investment

Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States. The company, through its subsidiaries, invests in a portfolio of mortgage assets, including residential mortgage loans, agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, agency mortgage-backed securities secured by pools of commercial mortgage loans, business purpose and investor loans, and other real estate related securities. It invests in investment grade, non-investment grade, and non-rated classes. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, it intends to distribute at least 90% of its taxable income as dividends to shareholders. Chimera Investment Corporation was incorporated 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.