Contrasting DigitalBridge Group (NYSE:DBRG) and Westwood Holdings Group (NYSE:WHG)

Westwood Holdings Group (NYSE:WHG) and DigitalBridge Group (NYSE:DBRG) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Volatility and Risk

Westwood Holdings Group has a beta of 1.15, indicating that its stock price is 15% more 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Westwood Holdings Group and DigitalBridge Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westwood Holdings Group	0	0	0	0	N/A
DigitalBridge Group	0	0	7	1	3.13

DigitalBridge Group has a consensus target price of $19.22, indicating a potential upside of 27.70%. Given DigitalBridge Group’s higher probable upside, analysts plainly believe DigitalBridge Group is more favorable than Westwood Holdings Group.

Valuation & Earnings

This table compares Westwood Holdings Group and DigitalBridge Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westwood Holdings Group	$90.53 million	1.47	$10.57 million	$1.36	10.54
DigitalBridge Group	$1.08 billion	2.43	$185.28 million	$1.55	9.71

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

Dividends

Westwood Holdings Group pays an annual dividend of $0.60 per share and has a dividend yield of 4.2%. DigitalBridge Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Westwood Holdings Group pays out 44.1% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Westwood Holdings Group	7.63%	7.86%	6.35%
DigitalBridge Group	35.10%	4.49%	1.87%

Institutional and Insider Ownership

56.6% of Westwood Holdings Group shares are owned by institutional investors. Comparatively, 92.7% of DigitalBridge Group shares are owned by institutional investors. 10.1% of Westwood Holdings Group shares are owned by insiders. Comparatively, 3.4% of DigitalBridge Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

DigitalBridge Group beats Westwood Holdings Group on 11 of the 16 factors compared between the two stocks.

About Westwood Holdings Group

Westwood Holdings Group, Inc., through its subsidiaries, manages investment assets and provides services for its clients. The company operates in two segments, Advisory and Trust. The Advisory segment provides investment advisory services to corporate retirement plans, public retirement plans, endowments, foundations, individuals, and the Westwood Funds; and investment sub-advisory services to mutual funds, pooled investment vehicles, and its Trust segment. The Trust segment offers trust and custodial services; and participates in common trust funds that it sponsors to institutions and high net worth individuals. Westwood Holdings Group, Inc. was founded in 1983 and is based in Dallas, Texas.

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.