Bridge Investment Group (NYSE:BRDG) vs. Source Capital (NYSE:SOR) Financial Analysis

Bridge Investment Group (NYSE:BRDG) and Source Capital (NYSE:SOR) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Dividends

Bridge Investment Group pays an annual dividend of $0.44 per share and has a dividend yield of 4.3%. Source Capital pays an annual dividend of $2.50 per share and has a dividend yield of 5.7%. Bridge Investment Group pays out -84.6% of its earnings in the form of a dividend. Bridge Investment Group has increased its dividend for 1 consecutive years.

Valuation and Earnings

This table compares Bridge Investment Group and Source Capital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bridge Investment Group	$412.43 million	3.06	$8.01 million	($0.52)	-19.63
Source Capital	N/A	N/A	N/A	N/A	N/A

Bridge Investment Group has higher revenue and earnings than Source Capital.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bridge Investment Group	-3.45%	10.07%	4.11%
Source Capital	N/A	N/A	N/A

Institutional & Insider Ownership

52.8% of Bridge Investment Group shares are held by institutional investors. Comparatively, 13.2% of Source Capital shares are held by institutional investors. 65.9% of Bridge Investment Group shares are held by company insiders. Comparatively, 77.0% of Source Capital shares are held 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.

Risk and Volatility

Bridge Investment Group has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, Source Capital has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Bridge Investment Group and Source Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bridge Investment Group	0	5	0	0	2.00
Source Capital	0	0	0	0	0.00

Bridge Investment Group presently has a consensus target price of $10.70, indicating a potential upside of 4.80%. Given Bridge Investment Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Bridge Investment Group is more favorable than Source Capital.

Summary

Bridge Investment Group beats Source Capital on 9 of the 12 factors compared between the two stocks.

About Bridge Investment Group

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.

About Source Capital

Source Capital, Inc. is a close-ended balanced fund launched and managed by First Pacific Advisors, LLC. The fund invests in the public equity markets of the United States. It seeks to invest in the stocks of companies operating across diversified sectors. The fund primarily invests in value stocks of small to mid cap companies. It employs fundamental analysis with a bottom-up stock selection approach, focusing on such factors as high liquidity, relatively unleveraged balance sheets, and long-term ability to earn above-average returns on capital to create its portfolio. The fund benchmarks the performance of its portfolio against the Russell 2500 Index, the S&P 500 Index, and the Nasdaq Composite Index. Source Capital, Inc. was formed in June 1, 1968 and is domiciled in the United States.