Reviewing Value Line (NASDAQ:VALU) and DigitalBridge Group (NYSE:DBRG)

Value Line (NASDAQ:VALU) and DigitalBridge Group (NYSE:DBRG) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.

Volatility and Risk

Value Line has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, DigitalBridge Group has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500.

Dividends

Value Line pays an annual dividend of $1.20 per share and has a dividend yield of 2.4%. DigitalBridge Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Value Line pays out 56.6% of its earnings in the form of a dividend. DigitalBridge Group pays out 2.6% 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. Value Line has raised its dividend for 10 consecutive years. Value Line is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Value Line	54.72%	22.29%	14.86%
DigitalBridge Group	35.10%	4.49%	1.87%

Analyst Ratings

This is a breakdown of current recommendations for Value Line and DigitalBridge Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Value Line	0	0	0	0	N/A
DigitalBridge Group	0	0	7	1	3.13

DigitalBridge Group has a consensus target price of $19.22, indicating a potential upside of 23.28%. Given DigitalBridge Group’s higher probable upside, analysts plainly believe DigitalBridge Group is more favorable than Value Line.

Earnings and Valuation

This table compares Value Line and DigitalBridge Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Value Line	$37.49 million	12.31	$19.02 million	$2.12	23.11
DigitalBridge Group	$1.08 billion	2.51	$185.28 million	$1.55	10.06

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

Insider and Institutional Ownership

6.3% of Value Line shares are held by institutional investors. Comparatively, 92.7% of DigitalBridge Group shares are held by institutional investors. 0.0% of Value Line shares are held by insiders. Comparatively, 3.4% of DigitalBridge Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

DigitalBridge Group beats Value Line on 9 of the 17 factors compared between the two stocks.

About Value Line

Value Line, Inc. produces and sells investment periodicals and related publications. Its investment periodicals and related publications cover a range of investments, including stocks, mutual funds, exchange traded funds (ETFs), and options. The company's research services include The Value Line Investment Survey, The Value Line Investment Survey – Small and Mid-Cap, The Value Line 600, and The Value Line Fund Advisor Plus that provide statistical and text coverage of various investment securities, with an emphasis placed on its proprietary research, analysis, and statistical ranks. It also provides niche newsletters comprising Value Line Select: Dividend Income & Growth, Value Line Select: ETFs, The Value Line Special Situations Service, The Value Line M&A Service, The Value Line Climate Change Investing Service, and The Value Line Information You Should Know Wealth Newsletter that offer information on a less comprehensive basis for securities that are of particular interest to subscribers; digital versions of its products through its Website, www.valueline.com; The Value Line Research Center online platform; and investment analysis software, such as The Value Line Investment Analyzer and The New Value Line ETFs Service. In addition, the company offers current and historical financial databases comprising fundamental DataFile, estimates and projections, and mutual funds; and copyright products, which include unit investment trusts, variable annuities, managed accounts, and ETFs. Further, it operates as publishing unit for the investment related periodical publications and copyrights; places advertising on behalf of the company's publications; and distributes print publications. It serves individual and professional investors, as well as institutions, including municipal and university libraries, and investment firms. The company was founded in 1931 and is headquartered in New York, New York. Value Line, Inc. is a subsidiary of Arnold Bernhard & Co., Inc.

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.