Head-To-Head Contrast: Manhattan Bridge Capital (NASDAQ:LOAN) vs. Claros Mortgage Trust (NYSE:CMTG)

Claros Mortgage Trust (NYSE:CMTG) and Manhattan Bridge Capital (NASDAQ:LOAN) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Volatility and Risk

Claros Mortgage Trust has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Manhattan Bridge Capital has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500.

Institutional and Insider Ownership

89.5% of Claros Mortgage Trust shares are owned by institutional investors. Comparatively, 21.8% of Manhattan Bridge Capital shares are owned by institutional investors. 2.6% of Claros Mortgage Trust shares are owned by company insiders. Comparatively, 24.6% of Manhattan Bridge Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Claros Mortgage Trust and Manhattan Bridge Capital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Claros Mortgage Trust	$187.83 million	1.24	-$489.07 million	($3.66)	-0.45
Manhattan Bridge Capital	$8.67 million	4.38	$5.11 million	$0.42	7.97

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

Analyst Ratings

This is a summary of current ratings and price targets for Claros Mortgage Trust and Manhattan Bridge Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Claros Mortgage Trust	3	1	0	0	1.25
Manhattan Bridge Capital	0	2	0	0	2.00

Claros Mortgage Trust currently has a consensus price target of $2.08, indicating a potential upside of 26.34%. Given Claros Mortgage Trust’s higher probable upside, analysts clearly believe Claros Mortgage Trust is more favorable than Manhattan Bridge Capital.

Profitability

This table compares Claros Mortgage Trust and Manhattan Bridge Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Claros Mortgage Trust	-371.29%	-20.86%	-7.06%
Manhattan Bridge Capital	58.61%	11.14%	7.60%

Summary

Manhattan Bridge Capital beats Claros Mortgage Trust on 9 of the 13 factors compared between the two stocks.

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.

About Manhattan Bridge Capital

Manhattan Bridge Capital, Inc., a real estate finance company, originates, services, and manages a portfolio of first mortgage loans in the United States. The company offers short-term, secured, and non-banking loans to real estate investors to fund acquisition, renovation, rehabilitation, or development of residential or commercial properties. Its loans are secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers. 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 founded in 1989 and is headquartered in Great Neck, New York.