Critical Analysis: Angel Oak Mortgage REIT (NYSE:AOMR) and DigitalBridge Group (NYSE:DBRG)

Angel Oak Mortgage REIT (NYSE:AOMR) and DigitalBridge Group (NYSE:DBRG) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Angel Oak Mortgage REIT and DigitalBridge Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Angel Oak Mortgage REIT	0	3	3	0	2.50
DigitalBridge Group	1	6	3	0	2.20

Angel Oak Mortgage REIT currently has a consensus price target of $11.06, indicating a potential upside of 22.24%. DigitalBridge Group has a consensus price target of $16.00, indicating a potential upside of 4.27%. Given Angel Oak Mortgage REIT’s stronger consensus rating and higher possible upside, analysts clearly believe Angel Oak Mortgage REIT is more favorable than DigitalBridge Group.

Dividends

Angel Oak Mortgage REIT pays an annual dividend of $1.28 per share and has a dividend yield of 14.1%. DigitalBridge Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Angel Oak Mortgage REIT pays out 180.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DigitalBridge Group pays out 66.7% of its earnings in the form of a dividend.

Insider & Institutional Ownership

80.2% of Angel Oak Mortgage REIT shares are owned by institutional investors. Comparatively, 92.7% of DigitalBridge Group shares are owned by institutional investors. 2.5% of Angel Oak Mortgage REIT shares are owned by insiders. Comparatively, 3.6% of DigitalBridge Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Angel Oak Mortgage REIT and DigitalBridge Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Angel Oak Mortgage REIT	$110.43 million	2.04	$28.75 million	$0.71	12.75
DigitalBridge Group	$228.14 million	12.29	$70.52 million	$0.06	255.75

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

Risk and Volatility

Angel Oak Mortgage REIT has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, DigitalBridge Group has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500.

Profitability

This table compares Angel Oak Mortgage REIT and DigitalBridge Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Angel Oak Mortgage REIT	12.93%	6.42%	0.63%
DigitalBridge Group	N/A	4.78%	2.29%

Summary

DigitalBridge Group beats Angel Oak Mortgage REIT on 9 of the 15 factors compared between the two stocks.

About Angel Oak Mortgage REIT

Angel Oak Mortgage REIT, Inc., a real estate finance company, focuses on acquiring and investing in first lien non- qualified mortgage loans and other mortgage-related assets in the United States mortgage market. It offers investment securities; residential mortgage loans; and commercial mortgage loans. 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. The company was incorporated in 2018 and is headquartered in Atlanta, Georgia.

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.