Critical Survey: Bridge Investment Group (NYSE:BRDG) & B. Riley Financial (NASDAQ:RILY)

Bridge Investment Group (NYSE:BRDGGet Rating) and B. Riley Financial (NASDAQ:RILYGet Rating) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Volatility and Risk

Bridge Investment Group has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, B. Riley Financial has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500.

Earnings and Valuation

This table compares Bridge Investment Group and B. Riley Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bridge Investment Group $330.01 million 1.31 $23.23 million $1.48 9.99
B. Riley Financial $1.74 billion 0.67 $445.05 million ($1.89) -21.75

B. Riley Financial has higher revenue and earnings than Bridge Investment Group. B. Riley Financial is trading at a lower price-to-earnings ratio than Bridge Investment Group, indicating that it is currently the more affordable of the two stocks.

Dividends

Bridge Investment Group pays an annual dividend of $1.08 per share and has a dividend yield of 7.3%. B. Riley Financial pays an annual dividend of $4.00 per share and has a dividend yield of 9.7%. Bridge Investment Group pays out 73.0% of its earnings in the form of a dividend. B. Riley Financial pays out -211.6% 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. B. Riley Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

59.4% of Bridge Investment Group shares are held by institutional investors. Comparatively, 45.7% of B. Riley Financial shares are held by institutional investors. 65.9% of Bridge Investment Group shares are held by insiders. Comparatively, 27.9% of B. Riley Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Bridge Investment Group and B. Riley Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bridge Investment Group 9.45% 4.35% 2.72%
B. Riley Financial -3.78% 0.16% 0.02%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Bridge Investment Group and B. Riley Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bridge Investment Group 0 2 4 0 2.67
B. Riley Financial 0 0 0 0 N/A

Bridge Investment Group currently has a consensus price target of $18.50, indicating a potential upside of 25.08%. Given Bridge Investment Group’s higher probable upside, equities analysts plainly believe Bridge Investment Group is more favorable than B. Riley Financial.

Summary

Bridge Investment Group beats B. Riley Financial on 10 of the 15 factors compared between the two stocks.

About Bridge Investment Group

(Get Rating)

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 B. Riley Financial

(Get Rating)

B. Riley Financial, Inc., through its subsidiaries, provides investment banking and financial services to corporate, institutional, and high net worth clients in North America, Australia, and Europe. The company operates in six segments: Capital Markets, Wealth Management, Auction and Liquidation, Financial Consulting, Principal Investments-Communications, and Brands. The Capital Markets segments offers investment banking, corporate finance, financial advisory, research, securities lending and sales, and trading services; merger and acquisitions, restructuring advisory, initial and secondary public offerings, and institutional private placements services; asset management services; and trades in equity securities. The Wealth Management segment provides wealth management and tax services. The Auction and Liquidation Segment offers retail store liquidation, and wholesale and industrial assets disposition services. The Financial Consulting segment provides bankruptcy, forensic accounting, litigation support, operations management and real estate consulting, and valuation and appraisal services. The Principal Investments-Communications segment provides consumer Internet access through United Online under the NetZero and Juno brands; VoIP communication and related products, and subscription services through magicJack; and mobile phone services and devices through Marconi Wireless. The Brands segments provides licensing of a brand investment portfolio, including Catherine Malandrino, English Laundry, Joan Vass, Kensie Girl, Limited Too, and Nanette Lepore. It also offers advisory services; brokerage services; senior secured and second lien secured loans to middle market public and the private U.S. companies; and consulting services. The company was formerly known as Great American Group, Inc. and changed its name to B. Riley Financial, Inc. in November 2014. The company was founded in 1973 and is headquartered in Los Angeles, California.

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