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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

2 Reasons DBRG is Risky and 1 Stock to Buy Instead

DBRG Cover Image

Over the past six months, DigitalBridge has been a great trade, beating the S&P 500 by 12.2%. Its stock price has climbed to $12.04, representing a healthy 27.9% increase. This run-up might have investors contemplating their next move.

Is now the time to buy DigitalBridge, or should you be careful about including it in your portfolio? Get the full stock story straight from our expert analysts, it’s free.

Why Is DigitalBridge Not Exciting?

We’re happy investors have made money, but we don't have much confidence in DigitalBridge. Here are two reasons you should be careful with DBRG and a stock we'd rather own.

1. Revenue Spiraling Downwards

A company’s long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.

DigitalBridge’s demand was weak over the last five years as its revenue fell at a 21.7% annual rate. This wasn’t a great result and is a sign of lacking business quality.

DigitalBridge Quarterly RevenueNote: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

2. Previous Growth Initiatives Haven’t Impressed

Return on equity (ROE) measures how effectively banks generate profit from each dollar of shareholder equity - a critical funding source. High-ROE institutions typically compound shareholder wealth faster over time through retained earnings, share repurchases, and dividend payments.

Over the last five years, DigitalBridge has averaged an ROE of 1.3%, uninspiring for a company operating in a sector where the average shakes out around 10%.

Final Judgment

DigitalBridge isn’t a terrible business, but it doesn’t pass our bar. With its shares topping the market in recent months, the stock trades at 1.2× forward P/E (or $12.04 per share). Beauty is in the eye of the beholder, but we don’t really see a big opportunity at the moment. We're fairly confident there are better stocks to buy right now. We’d suggest looking at one of our all-time favorite software stocks.

Stocks We Would Buy Instead of DigitalBridge

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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