Contrasting GCM Grosvenor (NASDAQ:GCMG) and DigitalBridge Group (NYSE:DBRG)

GCM Grosvenor (NASDAQ:GCMG) and DigitalBridge Group (NYSE:DBRG) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Earnings and Valuation

This table compares GCM Grosvenor and DigitalBridge Group’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GCM Grosvenor	$445.00 million	4.07	$12.77 million	($0.29)	-33.38
DigitalBridge Group	$1.50 billion	1.60	$185.28 million	$1.55	9.48

DigitalBridge Group has higher revenue and earnings than GCM Grosvenor. GCM Grosvenor is trading at a lower price-to-earnings ratio than DigitalBridge Group, indicating that it is currently the more affordable of the two stocks.

Dividends

GCM Grosvenor pays an annual dividend of $0.44 per share and has a dividend yield of 4.5%. DigitalBridge Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. GCM Grosvenor pays out -151.7% of its earnings in the form of a dividend. DigitalBridge Group pays out 2.6% 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. GCM Grosvenor is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

100.0% of GCM Grosvenor shares are held by institutional investors. Comparatively, 92.7% of DigitalBridge Group shares are held by institutional investors. 77.7% of GCM Grosvenor shares are held by company insiders. Comparatively, 3.4% of DigitalBridge Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

GCM Grosvenor has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, DigitalBridge Group has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GCM Grosvenor	2.87%	-76.61%	16.41%
DigitalBridge Group	26.64%	2.91%	0.99%

Analyst Ratings

This is a breakdown of current ratings and target prices for GCM Grosvenor and DigitalBridge Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GCM Grosvenor	0	2	2	0	2.50
DigitalBridge Group	0	0	4	1	3.20

GCM Grosvenor presently has a consensus price target of $10.40, indicating a potential upside of 7.44%. DigitalBridge Group has a consensus price target of $21.75, indicating a potential upside of 47.96%. Given DigitalBridge Group’s stronger consensus rating and higher possible upside, analysts plainly believe DigitalBridge Group is more favorable than GCM Grosvenor.

Summary

DigitalBridge Group beats GCM Grosvenor on 11 of the 17 factors compared between the two stocks.

About GCM Grosvenor

GCM Grosvenor Inc. is global alternative asset management solutions provider. The firm primarily provides its services to pooled investment vehicles. It also provides its services to investment companies, high net worth individuals, pension and profit sharing plans and state or municipal government entities. The firm invests in equity and alternative investment markets of the United States and internationally. The firm invests in multi-strategy, credit-focused, equity-focused, macro-focused, commodity-focused, and other specialty portfolios. It focuses in hedge fund asset classes, private equity, real estate, and/or infrastructure, credit and absolute return strategies. It also focuses in primary fund investments, secondary fund investments, and co-investments with a focus on buyout, distressed debt, mezzanine, venture capital/growth equity investments. The firm seeks to do seed investments in small, emerging, and diverse private equity firms. The firm seeks to make regionally-focused investments in middle-market buyout. It prefers to invest in aerospace and defense, advanced electronics, information technology, biosciences, and advanced materials. It focuses on Ohio and the Midwest region. The firm employs fundamental and quantitative analysis. GCM Grosvenor Inc. was founded in 1971 and is based in Chicago, Illinois with additional offices in North America, Asia, Australia and Europe.

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.