Head to Head Comparison: Bridge Investment Group (NYSE:BRDG) & The Carlyle Group (NASDAQ:CG)

Bridge Investment Group (NYSE:BRDGGet Rating) and The Carlyle Group (NASDAQ:CGGet Rating) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Profitability

This table compares Bridge Investment Group and The Carlyle Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bridge Investment Group 29.40% 5.41% 3.28%
The Carlyle Group 33.77% 41.54% 10.81%

Valuation and Earnings

This table compares Bridge Investment Group and The Carlyle Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bridge Investment Group $330.01 million 1.71 $23.23 million $4.84 4.00
The Carlyle Group $8.78 billion 1.63 $2.97 billion $7.35 5.39

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Bridge Investment Group and The Carlyle Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bridge Investment Group 0 1 4 0 2.80
The Carlyle Group 0 3 6 0 2.67

Bridge Investment Group currently has a consensus target price of $21.20, suggesting a potential upside of 9.39%. The Carlyle Group has a consensus target price of $59.88, suggesting a potential upside of 51.20%. Given The Carlyle Group’s higher probable upside, analysts clearly believe The Carlyle Group is more favorable than Bridge Investment Group.

Insider & Institutional Ownership

65.5% of Bridge Investment Group shares are held by institutional investors. Comparatively, 93.8% of The Carlyle Group shares are held by institutional investors. 65.9% of Bridge Investment Group shares are held by company insiders. Comparatively, 29.8% of The Carlyle Group shares are held by company 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.

Dividends

Bridge Investment Group pays an annual dividend of $0.84 per share and has a dividend yield of 4.3%. The Carlyle Group pays an annual dividend of $1.30 per share and has a dividend yield of 3.3%. Bridge Investment Group pays out 17.4% of its earnings in the form of a dividend. The Carlyle Group pays out 17.7% 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. The Carlyle Group has raised its dividend for 1 consecutive years. Bridge Investment Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

The Carlyle Group beats Bridge Investment Group on 11 of the 16 factors compared between the two stocks.

Bridge Investment Group Company Profile (Get Rating)

Bridge Investment Group Holdings Inc. engages in the real estate investment management business in the United States. It manages capital on behalf of approximately hundred global institutions and 6,500 individual investors across approximately 25 investment vehicles. The company was founded in 2009 and is headquartered in Salt Lake City, Utah.

The Carlyle Group Company Profile (Get Rating)

The Carlyle Group Inc. is an investment firm specializing in direct and fund of fund investments. Within direct investments, it specializes in management-led/ Leveraged buyouts, privatizations, divestitures, strategic minority equity investments, structured credit, global distressed and corporate opportunities, small and middle market, equity private placements, consolidations and buildups, senior debt, mezzanine and leveraged finance, and venture and growth capital financings, seed/startup, early venture, emerging growth, turnaround, mid venture, late venture, PIPES. The firm invests across four segments which include Corporate Private Equity, Real Assets, Global Market Strategies, and Solutions. The firm typically invests in industrial, agribusiness, ecological sector, fintech, airports, parking, Plastics, Rubber, diversified natural resources, minerals, farming, aerospace, defense, automotive, consumer, retail, industrial, infrastructure, energy, power, healthcare, software, software enabled services, semiconductors, communications infrastructure, financial technology, utilities, gaming, systems and related supply chain, electronic systems, systems, oil and gas, processing facilities, power generation assets, technology, systems, real estate, financial services, transportation, business services, telecommunications, media, and logistics sectors. Within the industrial sector, the firm invests in manufacturing, building products, packaging, chemicals, metals and mining, forestry and paper products, and industrial consumables and services. In consumer and retail sectors, it invests in food and beverage, retail, restaurants, consumer products, domestic consumption, consumer services, personal care products, direct marketing, and education. Within aerospace, defense, business services, and government services sectors, it seeks to invest in defense electronics, manufacturing and services, government contracting and services, information technology, distribution companies. In telecommunication and media sectors, it invests in cable TV, directories, publishing, entertainment and content delivery services, wireless infrastructure/services, fixed line networks, satellite services, broadband and Internet, and infrastructure. Within real estate, the firm invests in office, hotel, industrial, retail, for sale residential, student housing, hospitality, multifamily residential, homebuilding and building products, and senior living sectors. The firm seeks to make investments in growing business including those with overleveraged balance sheets. The firm seeks to hold its investments for four to six years. In the healthcare sector, it invests in healthcare services, outsourcing services, companies running clinical trials for pharmaceutical companies, managed care, pharmaceuticals, pharmaceutical related services, healthcare IT, medical, products, and devices. It seeks to invest in companies based in Sub-Saharan focusing on Ghana, Kenya, Mozambique, Botswana, Nigeria, Uganda, West Africa, North Africa and South Africa focusing on Tanzania and Zambia; Asia focusing on Pakistan, India, South East Asia, Indonesia, Philippines, Vietnam, Korea, and Japan; Australia; New Zealand; Europe focusing on France, Italy, Denmark, United Kingdom, Germany, Austria, Belgium, Finland, Iceland, Ireland, Netherlands, Norway, Portugal, Spain, Benelux , Sweden, Switzerland, Hungary, Poland, and Russia; Middle East focusing on Bahrain, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Turkey, and UAE; North America focusing on United States which further invest in Southeastern United States, Texas, Boston, San Francisco Bay Area and Pacific Northwest; Asia Pacific; Soviet Union, Central-Eastern Europe, and Israel; Nordic region; and South America focusing on Mexico, Argentina, Brazil, Chile, and Peru. The firm seeks to invest in food, financial, and healthcare industries in Western China. In the real estate sector, the firm seeks to invest in various locations across Europe focusing on France and Central Europe, United States, Asia focusing on China, and Latin America. It typically invests between $1 million and $50 million for venture investments and between $50 million and $2 billion for buyouts in companies with enterprise value of between $31.57 million and $1000 million and sales value of $10 million and $500 million. It seeks to invest in companies with market capitalization greater than $50 million and EBITDA between $5 million to $25 million. It prefers to take a majority or a minority stake. It typically holds its investments for three to five years. Within automotive and transportation sectors, the firm seeks to hold its investments in for four to six years. While investing in Japan, it does not invest in companies with more than 1,000 employees and prefers companies' worth between $100 million and $150 million. The firm originates, structures, and acts as lead equity investor in the transactions. The Carlyle Group Inc. was founded in 1987 and is based in Washington, District of Columbia with additional offices in 21 countries across 5 continents (North America, South America, Asia, Australia and Europe).

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