Moelis & Company (NYSE:MC – Get Free Report) and DigitalBridge Group (NYSE:DBRG – Get Free Report) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
Risk and Volatility
Moelis & Company has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, DigitalBridge Group has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500.
Valuation and Earnings
This table compares Moelis & Company 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 | |
| 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 |
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.
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% |
Insider & Institutional Ownership
91.5% of Moelis & Company shares are held by institutional investors. Comparatively, 92.7% of DigitalBridge Group shares are held by institutional investors. 6.4% of Moelis & Company shares are held by company insiders. Comparatively, 3.4% of DigitalBridge Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings for Moelis & Company and DigitalBridge Group, as reported 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 target price of $60.83, indicating a potential downside of 17.39%. DigitalBridge Group has a consensus target price of $18.13, indicating a potential upside of 44.31%. Given DigitalBridge Group’s stronger consensus rating and higher probable upside, analysts plainly believe DigitalBridge Group is more favorable than Moelis & Company.
Summary
DigitalBridge Group beats Moelis & Company on 11 of the 17 factors compared between the two stocks.
About Moelis & Company
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
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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