Critical Review: DigitalBridge Group (NYSE:DBRG) and Fifth Street Asset Management (OTCMKTS:FSAM)

Fifth Street Asset Management (OTCMKTS:FSAM) and DigitalBridge Group (NYSE:DBRG) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Dividends

Fifth Street Asset Management pays an annual dividend of $0.14 per share and has a dividend yield of 992.9%. DigitalBridge Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. DigitalBridge Group pays out 5.5% of its earnings in the form of a dividend.

Volatility & Risk

Fifth Street Asset Management has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, DigitalBridge Group has a beta of 1.94, meaning that its stock price is 94% more volatile than the S&P 500.

Valuation and Earnings

This table compares Fifth Street Asset Management and DigitalBridge Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fifth Street Asset Management	N/A	N/A	N/A	N/A	N/A
DigitalBridge Group	$1.50 billion	1.37	$185.28 million	$0.73	16.25

DigitalBridge Group has higher revenue and earnings than Fifth Street Asset Management.

Insider and Institutional Ownership

92.7% of DigitalBridge Group shares are held by institutional investors. 85.4% of Fifth Street Asset Management shares are held by insiders. Comparatively, 3.4% of DigitalBridge Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Fifth Street Asset Management and DigitalBridge Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fifth Street Asset Management	N/A	N/A	N/A
DigitalBridge Group	21.42%	3.58%	1.72%

Analyst Recommendations

This is a summary of recent ratings and target prices for Fifth Street Asset Management and DigitalBridge Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fifth Street Asset Management	0	0	0	0	0.00
DigitalBridge Group	0	1	6	1	3.00

DigitalBridge Group has a consensus target price of $18.13, suggesting a potential upside of 52.82%. Given DigitalBridge Group’s stronger consensus rating and higher possible upside, analysts clearly believe DigitalBridge Group is more favorable than Fifth Street Asset Management.

Summary

DigitalBridge Group beats Fifth Street Asset Management on 10 of the 13 factors compared between the two stocks.

About Fifth Street Asset Management

Fifth Street Asset Management Inc. is an asset management holding company. The firm provides asset management services through its subsidiaries. Fifth Street Asset Management Inc. was founded in 1998 and is headquartered in Greenwich, Connecticut.

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.