DigitalBridge Group (NYSE:DBRG – Get Free Report) and Annaly Capital Management (NYSE:NLY – Get Free Report) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.
Institutional & Insider 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 insiders. Comparatively, 0.2% of Annaly Capital Management shares are held by 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.
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% |
Volatility and Risk
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.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for DigitalBridge Group and Annaly Capital Management, as provided by MarketBeat.com.
| 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 currently has a consensus price target of $16.00, suggesting a potential upside of 2.07%. Annaly Capital Management has a consensus price target of $24.22, suggesting a potential upside of 13.27%. Given Annaly Capital Management’s stronger consensus rating and higher possible upside, analysts plainly believe Annaly Capital Management is more favorable than DigitalBridge Group.
Valuation and Earnings
This table compares DigitalBridge Group and Annaly Capital Management”s revenue, earnings per share (EPS) 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.
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.
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