DigitalBridge Group (NYSE:DBRG – Get Free Report) and Houlihan Lokey (NYSE:HLI – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.
Risk & Volatility
DigitalBridge Group has a beta of 1.95, indicating that its share price is 95% more volatile than the S&P 500. Comparatively, Houlihan Lokey has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.
Profitability
This table compares DigitalBridge Group and Houlihan Lokey’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DigitalBridge Group | 35.10% | 4.49% | 1.87% |
| Houlihan Lokey | 15.30% | 18.80% | 11.23% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DigitalBridge Group | $1.50 billion | 1.77 | $185.28 million | $2.13 | 7.20 |
| Houlihan Lokey | $2.01 billion | 5.71 | $280.30 million | $4.11 | 40.75 |
Houlihan Lokey has higher revenue and earnings than DigitalBridge Group. DigitalBridge Group is trading at a lower price-to-earnings ratio than Houlihan Lokey, indicating that it is currently the more affordable of the two stocks.
Dividends
DigitalBridge Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Houlihan Lokey pays an annual dividend of $2.28 per share and has a dividend yield of 1.4%. DigitalBridge Group pays out 1.9% of its earnings in the form of a dividend. Houlihan Lokey pays out 55.5% 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.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for DigitalBridge Group and Houlihan Lokey, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DigitalBridge Group | 0 | 0 | 7 | 1 | 3.13 |
| Houlihan Lokey | 1 | 4 | 1 | 0 | 2.00 |
DigitalBridge Group currently has a consensus target price of $19.22, indicating a potential upside of 25.37%. Houlihan Lokey has a consensus target price of $157.00, indicating a potential downside of 6.26%. Given DigitalBridge Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe DigitalBridge Group is more favorable than Houlihan Lokey.
Insider & Institutional Ownership
92.7% of DigitalBridge Group shares are held by institutional investors. Comparatively, 78.1% of Houlihan Lokey shares are held by institutional investors. 3.4% of DigitalBridge Group shares are held by insiders. Comparatively, 26.0% of Houlihan Lokey shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Houlihan Lokey beats DigitalBridge Group on 9 of the 17 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 Houlihan Lokey
Houlihan Lokey, Inc., an investment banking company, provides merger and acquisition (M&A), capital market, financial restructuring, and financial and valuation advisory services worldwide. It operates in three segments: Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory. The Corporate Finance segment offers general financial advisory services; and advises public and private institutions on buy-side and sell-side transactions, leveraged loans, private mezzanine debt, high-yield debt, initial public offerings, follow-ons, convertibles, equity private placements, private equity, and liability management transactions, as well as advise financial sponsors on various transactions. The Financial Restructuring segment advises debtors, creditors, and other parties-in-interest related to recapitalization/deleveraging transactions. It also provides a range of advisory services, including structuring, negotiation, and confirmation of plans of reorganization; structuring and analysis of exchange offers; corporate viability assessment; dispute resolution and expert testimony; and procuring debtor-in-possession financing. The Financial and Valuation Advisory segment offers valuations of various assets, such as companies, illiquid debt and equity securities, and intellectual property. It also provides fairness opinions in connection with M&A and other transactions, solvency opinions in connection with corporate spin-offs and dividend recapitalizations, and other types of financial opinions. In addition, this segment offers dispute resolution services. It serves corporations, financial sponsors, and government agencies. The company was incorporated in 1972 and is headquartered in Los Angeles, California.
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