DigitalBridge Group (NYSE:DBRG) and Dynex Capital (NYSE:DX) Critical Survey

DigitalBridge Group (NYSE:DBRG) and Dynex Capital (NYSE:DX) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DigitalBridge Group	18.57%	4.14%	1.97%
Dynex Capital	17.27%	4.19%	0.57%

Dividends

DigitalBridge Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. Dynex Capital pays an annual dividend of $2.04 per share and has a dividend yield of 15.8%. DigitalBridge Group pays out -100.0% of its earnings in the form of a dividend. Dynex Capital pays out 261.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dynex Capital has raised its dividend for 5 consecutive years. Dynex Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

92.7% of DigitalBridge Group shares are owned by institutional investors. Comparatively, 38.3% of Dynex Capital shares are owned by institutional investors. 3.6% of DigitalBridge Group shares are owned by insiders. Comparatively, 1.0% of Dynex Capital shares are owned by 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.

Risk & Volatility

DigitalBridge Group has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500. Comparatively, Dynex Capital has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Valuation & Earnings

This table compares DigitalBridge Group and Dynex Capital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DigitalBridge Group	$228.14 million	8.97	$70.52 million	($0.04)	-280.88
Dynex Capital	$319.53 million	5.24	$113.90 million	$0.78	16.53

Dynex Capital has higher revenue and earnings than DigitalBridge Group. DigitalBridge Group is trading at a lower price-to-earnings ratio than Dynex Capital, 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 DigitalBridge Group and Dynex Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DigitalBridge Group	0	1	5	2	3.13
Dynex Capital	0	2	2	0	2.50

DigitalBridge Group presently has a consensus target price of $16.14, suggesting a potential upside of 43.68%. Dynex Capital has a consensus target price of $13.00, suggesting a potential upside of 0.85%. Given DigitalBridge Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe DigitalBridge Group is more favorable than Dynex Capital.

Summary

DigitalBridge Group beats Dynex Capital on 11 of the 18 factors compared between the two stocks.

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.

About Dynex Capital

Dynex Capital, Inc., a mortgage real estate investment trust, invests in mortgage-backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non-agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest-only securities. Agency MBS have a guaranty of principal payment by an agency of the U.S. government or a U.S. government-sponsored entity, such as Fannie Mae and Freddie Mac. Non-Agency MBS have no such guaranty of payment. The company has qualified as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders as dividends. Dynex Capital, Inc. was incorporated in 1987 and is headquartered in Glen Allen, Virginia.