DigitalBridge Group (NYSE:DBRG – Get Free Report) and Great Elm Capital (NASDAQ:GECC – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
Analyst Ratings
This is a summary of current recommendations for DigitalBridge Group and Great Elm Capital, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
DigitalBridge Group | 0 | 0 | 7 | 1 | 3.13 |
Great Elm Capital | 0 | 0 | 0 | 0 | N/A |
DigitalBridge Group currently has a consensus target price of $19.22, suggesting a potential upside of 50.26%. Given DigitalBridge Group’s higher possible upside, research analysts plainly believe DigitalBridge Group is more favorable than Great Elm Capital.
Profitability
Net Margins | Return on Equity | Return on Assets | |
DigitalBridge Group | 26.64% | 3.14% | 1.14% |
Great Elm Capital | 27.61% | 11.97% | 4.89% |
Earnings & Valuation
This table compares DigitalBridge Group and Great Elm Capital’s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
DigitalBridge Group | $1.08 billion | 2.06 | $185.28 million | $1.55 | 8.25 |
Great Elm Capital | $15.09 million | 6.50 | $25.33 million | $2.20 | 4.72 |
DigitalBridge Group has higher revenue and earnings than Great Elm Capital. Great Elm Capital is trading at a lower price-to-earnings ratio than DigitalBridge Group, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
DigitalBridge Group has a beta of 2, meaning that its stock price is 100% more volatile than the S&P 500. Comparatively, Great Elm Capital has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.
Dividends
DigitalBridge Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Great Elm Capital pays an annual dividend of $1.40 per share and has a dividend yield of 13.5%. DigitalBridge Group pays out 2.6% of its earnings in the form of a dividend. Great Elm Capital pays out 63.6% 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.
Institutional & Insider Ownership
92.7% of DigitalBridge Group shares are owned by institutional investors. Comparatively, 38.8% of Great Elm Capital shares are owned by institutional investors. 3.4% of DigitalBridge Group shares are owned by insiders. Comparatively, 10.2% of Great Elm Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
DigitalBridge Group beats Great Elm Capital on 9 of the 16 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 Great Elm Capital
Great Elm Capital Corp. is a business development company which specializes in loan and mezzanine, middle market investments. It invests in the debt instruments of middle market companies. The fund prefers to invest in media, commercial services and supplies, healthcare, telecommunication services, communications equipment. It typically makes equity investments between $3 million and $10 million in companies with revenues between $3 million and $75 million.
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