Head-To-Head Comparison: Franklin BSP Realty Trust (NYSE:FBRT) and Adamas Trust (NASDAQ:ADAM)

Franklin BSP Realty Trust (NYSE:FBRT) and Adamas Trust (NASDAQ:ADAM) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.

Institutional and Insider Ownership

59.9% of Franklin BSP Realty Trust shares are owned by institutional investors. Comparatively, 54.9% of Adamas Trust shares are owned by institutional investors. 1.3% of Franklin BSP Realty Trust shares are owned by company insiders. Comparatively, 2.0% of Adamas Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Franklin BSP Realty Trust pays an annual dividend of $0.80 per share and has a dividend yield of 13.0%. Adamas Trust pays an annual dividend of $1.20 per share and has a dividend yield of 22.9%. Franklin BSP Realty Trust pays out -1,000.0% of its earnings in the form of a dividend. Adamas Trust pays out -210.5% 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.

Valuation & Earnings

This table compares Franklin BSP Realty Trust and Adamas Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franklin BSP Realty Trust	$270.07 million	1.72	$82.27 million	($0.08)	-76.94
Adamas Trust	$601.95 million	0.79	$149.05 million	($0.57)	-9.21

Adamas Trust has higher revenue and earnings than Franklin BSP Realty Trust. Franklin BSP Realty Trust is trading at a lower price-to-earnings ratio than Adamas Trust, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Franklin BSP Realty Trust has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Adamas Trust has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Franklin BSP Realty Trust and Adamas Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin BSP Realty Trust	2	1	4	0	2.29
Adamas Trust	2	3	1	0	1.83

Franklin BSP Realty Trust presently has a consensus target price of $10.75, suggesting a potential upside of 74.65%. Adamas Trust has a consensus target price of $9.25, suggesting a potential upside of 76.19%. Given Adamas Trust’s higher probable upside, analysts clearly believe Adamas Trust is more favorable than Franklin BSP Realty Trust.

Profitability

This table compares Franklin BSP Realty Trust and Adamas Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franklin BSP Realty Trust	6.38%	4.30%	0.83%
Adamas Trust	-0.26%	15.77%	1.05%

Summary

Adamas Trust beats Franklin BSP Realty Trust on 9 of the 16 factors compared between the two stocks.

About Franklin BSP Realty Trust

Franklin BSP Realty Trust, Inc. is an externally managed real estate investment trust focused on commercial real estate debt. It originates and acquires investments such as first mortgage loans, subordinate loans, mezzanine loans, preferred equity interests and commercial mortgage-backed securities. The company’s lending and investment activities span commercial property types, including multifamily, office, industrial, retail and hospitality properties. Its investments are focused primarily on real estate in the United States.

About Adamas Trust

Adamas Trust, Inc. is a real estate investment trust focused on commercial real estate lending. Through its lending and investment activities, the company provides financing for commercial properties and invests in commercial real estate-related assets. The company was formerly known as ACRES Commercial Realty Corp. Its portfolio and lending activities have focused primarily on commercial real estate in the United States, including properties undergoing renovation, repositioning or other transitions.