Analyzing Broadstone Net Lease (NYSE:BNL) and DigitalBridge Group (NYSE:DBRG)

Broadstone Net Lease (NYSE:BNLGet Rating) and DigitalBridge Group (NYSE:DBRGGet Rating) are both mid-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings for Broadstone Net Lease and DigitalBridge Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Broadstone Net Lease 0 4 0 0 2.00
DigitalBridge Group 0 1 2 1 3.00

Broadstone Net Lease presently has a consensus price target of $25.75, indicating a potential upside of 16.36%. DigitalBridge Group has a consensus price target of $9.88, indicating a potential upside of 39.67%. Given DigitalBridge Group’s stronger consensus rating and higher probable upside, analysts plainly believe DigitalBridge Group is more favorable than Broadstone Net Lease.

Institutional and Insider Ownership

71.4% of Broadstone Net Lease shares are owned by institutional investors. Comparatively, 83.7% of DigitalBridge Group shares are owned by institutional investors. 0.8% of Broadstone Net Lease shares are owned by company insiders. Comparatively, 3.7% of DigitalBridge Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Broadstone Net Lease has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, DigitalBridge Group has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500.

Profitability

This table compares Broadstone Net Lease and DigitalBridge Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Broadstone Net Lease 26.75% 3.84% 2.31%
DigitalBridge Group -29.23% -3.04% -0.94%

Valuation & Earnings

This table compares Broadstone Net Lease and DigitalBridge Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Broadstone Net Lease $382.88 million 9.45 $102.43 million $0.66 33.53
DigitalBridge Group $965.80 million 4.17 -$310.10 million ($0.81) -8.73

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

Summary

DigitalBridge Group beats Broadstone Net Lease on 8 of the 15 factors compared between the two stocks.

Broadstone Net Lease Company Profile (Get Rating)

BNL is an internally-managed REIT that acquires, owns, and manages primarily single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. The Company utilizes an investment strategy underpinned by strong fundamental credit analysis and prudent real estate underwriting. As of September 30, 2020, BNL's diversified portfolio consisted of 627 properties in 41 U.S. states and one property in Canada across the industrial, healthcare, restaurant, office, and retail property types, with an aggregate gross asset value of approximately $4.0 billion.

DigitalBridge Group Company Profile (Get Rating)

DigitalBridge Group, Inc. is a leading global digital infrastructure REIT and private equity firm. With a heritage of over 25 years investing in and operating businesses across the digital ecosystem including towers, data centers, fiber, small cells, and edge infrastructure, the DigitalBridge team manages a $35 billion portfolio of digital infrastructure assets on behalf of its limited partners and shareholders. DigitalBridge Group, Inc., structured as a REIT, is headquartered in Boca Raton with key offices in Los Angeles, New York, London and Singapore. For more information on DigitalBridge, visit www.digitalbridge.com.

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