SURO Capital (NASDAQ:SSSS – Get Free Report) and DigitalBridge Group (NYSE:DBRG – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.
Institutional and Insider Ownership
12.9% of SURO Capital shares are owned by institutional investors. Comparatively, 92.7% of DigitalBridge Group shares are owned by institutional investors. 8.3% of SURO Capital 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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares SURO Capital and DigitalBridge Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SURO Capital | 10,695.73% | -6.61% | -5.13% |
| DigitalBridge Group | 49.79% | 6.31% | 3.03% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SURO Capital | 0 | 0 | 5 | 1 | 3.17 |
| DigitalBridge Group | 1 | 6 | 2 | 0 | 2.11 |
SURO Capital presently has a consensus target price of $15.00, suggesting a potential upside of 17.19%. DigitalBridge Group has a consensus target price of $16.00, suggesting a potential upside of 0.60%. Given SURO Capital’s stronger consensus rating and higher probable upside, analysts plainly believe SURO Capital is more favorable than DigitalBridge Group.
Volatility and Risk
SURO Capital has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, DigitalBridge Group has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.
Dividends
SURO Capital pays an annual dividend of $0.50 per share and has a dividend yield of 3.9%. DigitalBridge Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. SURO Capital pays out 7.2% 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.
Earnings and Valuation
This table compares SURO Capital and DigitalBridge Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SURO Capital | $218.95 million | 1.52 | $48.81 million | $6.98 | 1.83 |
| DigitalBridge Group | $374.45 million | 7.75 | $141.87 million | $1.54 | 10.33 |
DigitalBridge Group has higher revenue and earnings than SURO Capital. SURO Capital 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 SURO Capital on 9 of the 17 factors compared between the two stocks.
About SURO Capital
SuRo Capital Corp. is a business development company. The firm seeks to invest in growth capital, late stage and venture capital-backed private companies. SuRo Capital Corp. was founded in 2010 and is based in San Francisco, California with additional office in New York, 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.
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