Analyzing AvalonBay Communities (NYSE:AVB) & DigitalBridge Group (NYSE:DBRG)

AvalonBay Communities (NYSE:AVBGet Rating) and DigitalBridge Group (NYSE:DBRGGet Rating) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
AvalonBay Communities 47.68% 10.31% 5.72%
DigitalBridge Group -30.95% -3.79% -1.15%

Analyst Ratings

This is a breakdown of recent ratings and target prices for AvalonBay Communities and DigitalBridge Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AvalonBay Communities 0 6 9 0 2.60
DigitalBridge Group 0 2 2 1 2.80

AvalonBay Communities currently has a consensus price target of $259.40, suggesting a potential upside of 35.82%. DigitalBridge Group has a consensus price target of $9.88, suggesting a potential upside of 108.33%. Given DigitalBridge Group’s stronger consensus rating and higher probable upside, analysts clearly believe DigitalBridge Group is more favorable than AvalonBay Communities.

Earnings and Valuation

This table compares AvalonBay Communities and DigitalBridge Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AvalonBay Communities $2.29 billion 11.64 $1.00 billion $8.04 23.76
DigitalBridge Group $965.80 million 2.80 -$310.10 million ($0.71) -6.68

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

Risk and Volatility

AvalonBay Communities has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, DigitalBridge Group has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500.

Insider & Institutional Ownership

91.0% of AvalonBay Communities shares are owned by institutional investors. Comparatively, 79.4% of DigitalBridge Group shares are owned by institutional investors. 0.3% of AvalonBay Communities 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 hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

AvalonBay Communities beats DigitalBridge Group on 10 of the 15 factors compared between the two stocks.

About AvalonBay Communities (Get Rating)

As of December 31, 2020, the Company owned or held a direct or indirect ownership interest in 291 apartment communities containing 86,025 apartment homes in 11 states and the District of Columbia, of which 18 communities were under development and one community was under redevelopment. The Company is an equity REIT in the business of developing, redeveloping, acquiring and managing apartment communities in leading metropolitan areas in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California, as well as in the Company's expansion markets consisting of Southeast Florida and Denver, Colorado (the "Expansion Markets").

About DigitalBridge Group (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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