Financial Comparison: AFC Gamma (NASDAQ:AFCG) versus DigitalBridge Group (NYSE:DBRG)

DigitalBridge Group (NYSE:DBRG) and AFC Gamma (NASDAQ:AFCG) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares DigitalBridge Group and AFC Gamma”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DigitalBridge Group	$374.45 million	7.50	$141.87 million	$0.45	34.17
AFC Gamma	$31.32 million	1.97	-$20.67 million	($0.95)	-2.75

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

Volatility & Risk

DigitalBridge Group has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500. Comparatively, AFC Gamma has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.

Dividends

DigitalBridge Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. AFC Gamma pays an annual dividend of $0.53 per share and has a dividend yield of 20.3%. DigitalBridge Group pays out 8.9% of its earnings in the form of a dividend. AFC Gamma pays out -55.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. AFC Gamma is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares DigitalBridge Group and AFC Gamma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DigitalBridge Group	N/A	5.51%	2.64%
AFC Gamma	-70.17%	0.99%	0.62%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for DigitalBridge Group and AFC Gamma, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DigitalBridge Group	1	7	1	0	2.00
AFC Gamma	2	2	0	0	1.50

DigitalBridge Group presently has a consensus target price of $16.00, indicating a potential upside of 4.07%. AFC Gamma has a consensus target price of $5.75, indicating a potential upside of 119.72%. Given AFC Gamma’s higher probable upside, analysts plainly believe AFC Gamma is more favorable than DigitalBridge Group.

Insider and Institutional Ownership

92.7% of DigitalBridge Group shares are held by institutional investors. Comparatively, 26.5% of AFC Gamma shares are held by institutional investors. 3.6% of DigitalBridge Group shares are held by insiders. Comparatively, 25.1% of AFC Gamma shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

DigitalBridge Group beats AFC Gamma on 12 of the 16 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 AFC Gamma

AFC Gamma, Inc. originates, structures, underwrites, and invests in senior secured loans, and other various commercial real estate loans and debt securities for established companies operating in the cannabis industry. It primarily originates loans structured as senior loans secured by real estate, equipment, and licenses and/or other assets of the loan parties to the extent permitted by applicable laws and the regulations governing such loan parties. The company has elected and qualified to be taxed as a real estate investment trust for the United States federal income tax purposes under the Internal Revenue Code of 1986. AFC Gamma, Inc. was incorporated in 2020 and is based in West Palm Beach, Florida.