DigitalBridge Group (NYSE:DBRG – Get Free Report) and Stellus Capital Investment (NYSE:SCM – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.
Profitability
This table compares DigitalBridge Group and Stellus Capital Investment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DigitalBridge Group | 49.79% | 6.31% | 3.03% |
| Stellus Capital Investment | 30.66% | 9.09% | 3.32% |
Earnings & Valuation
This table compares DigitalBridge Group and Stellus Capital Investment”s gross 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 | 8.01 | $141.87 million | $1.54 | 10.39 |
| Stellus Capital Investment | $37.09 million | 5.55 | $27.05 million | $1.02 | 7.08 |
DigitalBridge Group has higher revenue and earnings than Stellus Capital Investment. Stellus Capital Investment is trading at a lower price-to-earnings ratio than DigitalBridge Group, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
92.7% of DigitalBridge Group shares are owned by institutional investors. Comparatively, 13.2% of Stellus Capital Investment shares are owned by institutional investors. 3.4% of DigitalBridge Group shares are owned by insiders. Comparatively, 4.2% of Stellus Capital Investment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
DigitalBridge Group has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, Stellus Capital Investment has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings for DigitalBridge Group and Stellus Capital Investment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DigitalBridge Group | 1 | 7 | 1 | 0 | 2.00 |
| Stellus Capital Investment | 0 | 3 | 1 | 0 | 2.25 |
DigitalBridge Group presently has a consensus price target of $16.00, suggesting a potential upside of 0.00%. Stellus Capital Investment has a consensus price target of $9.25, suggesting a potential upside of 28.03%. Given Stellus Capital Investment’s stronger consensus rating and higher possible upside, analysts clearly believe Stellus Capital Investment is more favorable than DigitalBridge Group.
Dividends
DigitalBridge Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Stellus Capital Investment pays an annual dividend of $1.00 per share and has a dividend yield of 13.8%. DigitalBridge Group pays out 2.6% of its earnings in the form of a dividend. Stellus Capital Investment pays out 98.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Summary
DigitalBridge Group beats Stellus Capital Investment on 9 of the 15 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 Stellus Capital Investment
Stellus Capital Investment Corporation is a business development company specializing in investments in private middle-market companies. It invests through first lien, second lien, unitranche, and mezzanine debt financing, often with a corresponding equity investment. The fund prefers to invest in US and Canada. The fund seeks to invest in companies with an EBITDA between $5 million and $50 million.
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