Arbor Realty Trust (NYSE:ABR) vs. DigitalBridge Group (NYSE:DBRG) Head-To-Head Review

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

Earnings & Valuation

This table compares Arbor Realty Trust and DigitalBridge Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arbor Realty Trust	$940.01 million	1.47	$148.80 million	$0.55	13.10
DigitalBridge Group	$374.45 million	7.61	$141.87 million	$0.49	31.91

Arbor Realty Trust has higher revenue and earnings than DigitalBridge Group. Arbor Realty Trust 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

Arbor Realty Trust pays an annual dividend of $1.20 per share and has a dividend yield of 16.7%. DigitalBridge Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Arbor Realty Trust pays out 218.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DigitalBridge Group pays out 8.2% of its earnings in the form of a dividend.

Risk and Volatility

Arbor Realty Trust has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, DigitalBridge Group has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.

Institutional & Insider Ownership

57.3% of Arbor Realty Trust shares are held by institutional investors. Comparatively, 92.7% of DigitalBridge Group shares are held by institutional investors. 3.8% of Arbor Realty Trust shares are held by company insiders. Comparatively, 3.6% of DigitalBridge Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Arbor Realty Trust and DigitalBridge Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arbor Realty Trust	15.83%	10.10%	1.80%
DigitalBridge Group	N/A	3.89%	1.86%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Arbor Realty Trust and DigitalBridge Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arbor Realty Trust	4	1	1	0	1.50
DigitalBridge Group	1	7	1	0	2.00

Arbor Realty Trust presently has a consensus price target of $9.00, suggesting a potential upside of 24.91%. DigitalBridge Group has a consensus price target of $16.00, suggesting a potential upside of 2.33%. Given Arbor Realty Trust’s higher possible upside, equities analysts plainly believe Arbor Realty Trust is more favorable than DigitalBridge Group.

Summary

Arbor Realty Trust beats DigitalBridge Group on 8 of the 15 factors compared between the two stocks.

About Arbor Realty Trust

Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States. The company operates through Structured Business and Agency Business segments. It primarily invests in bridge and mezzanine loans, including junior participating interests in first mortgages, and preferred and direct equity, as well as real estate-related joint ventures, real estate-related notes, and various mortgage-related securities. In addition, the company offers bridge financing products to borrowers who seek short-term capital to be used in an acquisition of property; financing by making preferred equity investments in entities that directly or indirectly own real property; mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower’s equity in a transaction; junior participation financing in the form of a junior participating interest in the senior debt; and financing products to borrowers who are looking to acquire conventional, workforce, and affordable single-family housing. Further, it underwrites, originates, sells, and services multifamily mortgage loans through conduit/commercial mortgage-backed securities programs. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Arbor Realty Trust, Inc. was incorporated in 2003 and is headquartered in Uniondale, New York.

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.