Comparing DigitalBridge Group (NYSE:DBRG) and AvalonBay Communities (NYSE:AVB)

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

Profitability

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

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for DigitalBridge Group and AvalonBay Communities, as provided by MarketBeat.

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

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

Earnings and Valuation

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

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

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 & Volatility

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

Institutional and Insider Ownership

79.4% of DigitalBridge Group shares are held by institutional investors. Comparatively, 91.0% of AvalonBay Communities shares are held by institutional investors. 3.7% of DigitalBridge Group shares are held by insiders. Comparatively, 0.3% of AvalonBay Communities shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds 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 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.

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").

Want More Great Investing Ideas?

Receive News & Ratings for DigitalBridge Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for DigitalBridge Group and related companies with MarketBeat.com's FREE daily email newsletter.