Head-To-Head Survey: Moelis & Company (NYSE:MC) versus DigitalBridge Group (NYSE:DBRG)

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

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Moelis & Company $854.75 million 6.45 -$24.70 million $0.53 138.93
DigitalBridge Group $1.50 billion 1.46 $185.28 million $0.73 17.21

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.

Institutional and Insider Ownership

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

Risk and Volatility

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

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 summary of current ratings and target prices for Moelis & Company and DigitalBridge Group, as provided by MarketBeat.com.

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 currently has a consensus price target of $60.83, indicating a potential downside of 17.39%. DigitalBridge Group has a consensus price target of $18.13, indicating a potential upside of 44.31%. 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 3.3%. 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

(Get Free Report)

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

(Get Free Report)

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.

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