DigitalBridge Group (NYSE:DBRG) and Annaly Capital Management (NYSE:NLY) Financial Review

DigitalBridge Group (NYSE:DBRG) and Annaly Capital Management (NYSE:NLY) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Earnings & Valuation

This table compares DigitalBridge Group and Annaly Capital Management”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DigitalBridge Group	$374.45 million	7.63	$141.87 million	$0.49	31.99
Annaly Capital Management	$5.96 billion	2.63	$2.03 billion	$2.96	7.22

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

Analyst Recommendations

This is a breakdown of current ratings for DigitalBridge Group and Annaly Capital Management, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DigitalBridge Group	1	7	1	0	2.00
Annaly Capital Management	0	4	7	1	2.75

DigitalBridge Group presently has a consensus target price of $16.00, indicating a potential upside of 2.07%. Annaly Capital Management has a consensus target price of $24.22, indicating a potential upside of 13.27%. Given Annaly Capital Management’s stronger consensus rating and higher probable upside, analysts plainly believe Annaly Capital Management is more favorable than DigitalBridge Group.

Insider & Institutional Ownership

92.7% of DigitalBridge Group shares are held by institutional investors. Comparatively, 51.6% of Annaly Capital Management shares are held by institutional investors. 3.4% of DigitalBridge Group shares are held by company insiders. Comparatively, 0.2% of Annaly Capital Management shares are held by company 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.

Volatility and Risk

DigitalBridge Group has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, Annaly Capital Management has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Profitability

This table compares DigitalBridge Group and Annaly Capital Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DigitalBridge Group	N/A	3.89%	1.86%
Annaly Capital Management	34.33%	15.92%	1.68%

Dividends

DigitalBridge Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Annaly Capital Management pays an annual dividend of $2.80 per share and has a dividend yield of 13.1%. DigitalBridge Group pays out 8.2% of its earnings in the form of a dividend. Annaly Capital Management pays out 94.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Annaly Capital Management has increased its dividend for 2 consecutive years. Annaly Capital Management is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Annaly Capital Management beats DigitalBridge Group on 11 of the 18 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 Annaly Capital Management

Annaly Capital Management, Inc., a diversified capital manager, engages in mortgage finance. The company invests in agency mortgage-backed securities collateralized by residential mortgages; non-agency residential whole loans and securitized products within the residential and commercial markets; mortgage servicing rights; agency commercial mortgage-backed securities; to-be-announced forward contracts; residential mortgage loans; and agency or private label credit risk transfer securities. It has elected to be taxed as a real estate investment trust (REIT). As a REIT, it is not subject to federal income tax to the extent that it distributes its taxable income to its shareholders. The company was incorporated in 1996 and is based in New York, New York.