Head-To-Head Contrast: U.S. Global Investors (NASDAQ:GROW) & DigitalBridge Group (NYSE:DBRG)

U.S. Global Investors (NASDAQ:GROW) and DigitalBridge Group (NYSE:DBRG) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Institutional and Insider Ownership

23.6% of U.S. Global Investors shares are owned by institutional investors. Comparatively, 92.7% of DigitalBridge Group shares are owned by institutional investors. 19.2% of U.S. Global Investors shares are owned by company insiders. Comparatively, 3.4% of DigitalBridge Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares U.S. Global Investors and DigitalBridge Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
U.S. Global Investors	5.40%	1.05%	0.99%
DigitalBridge Group	10.98%	4.29%	2.06%

Risk and Volatility

U.S. Global Investors has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500. Comparatively, DigitalBridge Group has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for U.S. Global Investors and DigitalBridge Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
U.S. Global Investors	0	0	0	0	0.00
DigitalBridge Group	0	1	7	2	3.10

DigitalBridge Group has a consensus price target of $16.39, indicating a potential upside of 106.28%. Given DigitalBridge Group’s stronger consensus rating and higher probable upside, analysts plainly believe DigitalBridge Group is more favorable than U.S. Global Investors.

Dividends

U.S. Global Investors pays an annual dividend of $0.09 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 0.5%. U.S. Global Investors pays out 300.0% 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 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares U.S. Global Investors 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
U.S. Global Investors	$9.42 million	3.02	$1.33 million	$0.03	71.00
DigitalBridge Group	$607.03 million	2.28	$185.28 million	$0.03	264.83

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

Summary

DigitalBridge Group beats U.S. Global Investors on 12 of the 16 factors compared between the two stocks.

About U.S. Global Investors

U.S. Global Investors, Inc. is a publicly owned investment manager. It primarily provides its services to investment companies. The firm is a large advisory firm, an investment adviser to an investment company which provides portfolio management for investment companies. The firm manages and launches equity/balanced funds, fixed income funds and other funds. It also manages hedge funds. The firm primarily invests in no-load mutual funds and exchange traded funds (ETFs). U.S. Global Investors, Inc. is based in San Antonio, 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.