Analyzing Claros Mortgage Trust (NYSE:CMTG) and Rithm Property Trust (NYSE:RPT)

Rithm Property Trust (NYSE:RPT) and Claros Mortgage Trust (NYSE:CMTG) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Rithm Property Trust and Claros Mortgage Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rithm Property Trust	1	0	0	1	2.50
Claros Mortgage Trust	3	1	0	0	1.25

Claros Mortgage Trust has a consensus price target of $2.22, suggesting a potential upside of 35.99%. Given Claros Mortgage Trust’s higher probable upside, analysts plainly believe Claros Mortgage Trust is more favorable than Rithm Property Trust.

Profitability

This table compares Rithm Property Trust and Claros Mortgage Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rithm Property Trust	5.87%	1.20%	0.29%
Claros Mortgage Trust	-354.13%	-19.70%	-6.52%

Institutional and Insider Ownership

58.6% of Rithm Property Trust shares are owned by institutional investors. Comparatively, 89.5% of Claros Mortgage Trust shares are owned by institutional investors. 0.4% of Rithm Property Trust shares are owned by insiders. Comparatively, 2.6% of Claros Mortgage Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Rithm Property Trust pays an annual dividend of $1.44 per share and has a dividend yield of 11.2%. Claros Mortgage Trust pays an annual dividend of $0.40 per share and has a dividend yield of 24.5%. Rithm Property Trust pays out -553.8% of its earnings in the form of a dividend. Claros Mortgage Trust pays out -10.4% 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 & Valuation

This table compares Rithm Property Trust and Claros Mortgage Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rithm Property Trust	$52.80 million	1.89	$1.47 million	($0.26)	-49.38
Claros Mortgage Trust	$69.81 million	3.29	-$489.07 million	($3.83)	-0.43

Rithm Property Trust has higher earnings, but lower revenue than Claros Mortgage Trust. Rithm Property Trust is trading at a lower price-to-earnings ratio than Claros Mortgage Trust, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Rithm Property Trust has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, Claros Mortgage Trust has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.

Summary

Rithm Property Trust beats Claros Mortgage Trust on 9 of the 16 factors compared between the two stocks.

About Rithm Property Trust

Rithm Property Trust Inc is a real estate investment trust (REIT) externally managed by an affiliate of Rithm Capital Corp. (Rithm). The company focuses on commercial real estate-focused investment, including originating, acquiring and managing portfolios of CMBS, commercial real property, commercial mortgage loans and other CRE investments. It has two reportable operating segments: Residential and Commercial. The majority of the company’s revenue is derived from the Residential segment, which is focused on managing a portfolio that includes residential mortgage assets, including whole mortgage loans, RMBS and beneficial interests.

About Claros Mortgage Trust

Claros Mortgage Trust, Inc. operates as a real estate investment trust. It focuses on originating senior and subordinate loans on transitional commercial real estate assets in the United States. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was incorporated in 2015 and is headquartered in New York, New York.