Head to Head Analysis: DigitalBridge Group (NYSE:DBRG) versus Brookfield Asset Management (NYSE:BAM)

Brookfield Asset Management (NYSE:BAM) and DigitalBridge Group (NYSE:DBRG) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings for Brookfield Asset Management and DigitalBridge Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Asset Management	1	3	5	1	2.60
DigitalBridge Group	0	0	4	1	3.20

Brookfield Asset Management currently has a consensus price target of $42.25, suggesting a potential upside of 5.60%. DigitalBridge Group has a consensus price target of $21.75, suggesting a potential upside of 46.27%. Given DigitalBridge Group’s stronger consensus rating and higher probable upside, analysts clearly believe DigitalBridge Group is more favorable than Brookfield Asset Management.

Dividends

Brookfield Asset Management pays an annual dividend of $1.52 per share and has a dividend yield of 3.8%. DigitalBridge Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Brookfield Asset Management pays out 134.5% 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 2.6% of its earnings in the form of a dividend. Brookfield Asset Management has raised its dividend for 1 consecutive years. Brookfield Asset Management is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brookfield Asset Management	50.23%	96.43%	66.17%
DigitalBridge Group	26.64%	2.91%	0.99%

Earnings and Valuation

This table compares Brookfield Asset Management and DigitalBridge Group’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield Asset Management	$383.00 million	43.16	$451.00 million	$1.13	35.41
DigitalBridge Group	$1.50 billion	1.62	$185.28 million	$1.55	9.59

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

Institutional & Insider Ownership

68.4% of Brookfield Asset Management shares are owned by institutional investors. Comparatively, 92.7% of DigitalBridge Group shares are owned by institutional investors. 3.4% of DigitalBridge Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Brookfield Asset Management has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500. Comparatively, DigitalBridge Group has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500.

Summary

Brookfield Asset Management beats DigitalBridge Group on 9 of the 17 factors compared between the two stocks.

About Brookfield Asset Management

Brookfield Asset Management Ltd. is a real estate investment firm specializing in alternative asset management services. Its renewable power and transition business includes the operates in the hydroelectric, wind, solar, distributed generation, and sustainable solution sector. The company's infrastructure business engages in the utilities, transport, midstream, and data infrastructure sectors. In addition, its private equity business offers industrial, infrastructure, and business services sectors; and real estate business, which includes housing, logistics, hospitality, science and innovation, office, and retail sectors. Further, it provides credit business; and insurance solution in the reinsurance, annuities, operating platform, and investment solutions sectors. Brookfield Asset Management Ltd. was incorporated in 2022 and is headquartered in Toronto, Canada.

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.