Ladder Capital (NYSE:LADR – Get Free Report) and Altisource Portfolio Solutions (NASDAQ:ASPS – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.
Valuation and Earnings
This table compares Ladder Capital and Altisource Portfolio Solutions”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ladder Capital | $390.29 million | 3.41 | $64.18 million | $0.51 | 20.48 |
| Altisource Portfolio Solutions | $170.98 million | 0.41 | $1.62 million | ($0.12) | -51.83 |
Risk and Volatility
Ladder Capital has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Altisource Portfolio Solutions has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations for Ladder Capital and Altisource Portfolio Solutions, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ladder Capital | 1 | 1 | 4 | 0 | 2.50 |
| Altisource Portfolio Solutions | 1 | 0 | 0 | 1 | 2.50 |
Ladder Capital currently has a consensus target price of $12.75, indicating a potential upside of 22.06%. Altisource Portfolio Solutions has a consensus target price of $8.00, indicating a potential upside of 28.62%. Given Altisource Portfolio Solutions’ higher possible upside, analysts clearly believe Altisource Portfolio Solutions is more favorable than Ladder Capital.
Profitability
This table compares Ladder Capital and Altisource Portfolio Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ladder Capital | 16.44% | 5.89% | 1.88% |
| Altisource Portfolio Solutions | 0.94% | -0.45% | 0.34% |
Institutional and Insider Ownership
62.3% of Ladder Capital shares are owned by institutional investors. Comparatively, 41.4% of Altisource Portfolio Solutions shares are owned by institutional investors. 12.0% of Ladder Capital shares are owned by company insiders. Comparatively, 19.1% of Altisource Portfolio Solutions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Ladder Capital beats Altisource Portfolio Solutions on 11 of the 14 factors compared between the two stocks.
About Ladder Capital
Ladder Capital Corp operates as an internally-managed real estate investment trust in the United States. It operates through three segments: Loans, Securities, and Real Estate. The Loans segment originates conduit first mortgage loans that are secured by cash-flowing commercial real estate; and originates and invests in balance sheet first mortgage loans secured by commercial real estate properties that are undergoing transition, including lease-up, sell-out, and renovation or repositioning. It also invests in note purchase financings, subordinated debt, mezzanine debt, and other structured finance products related to commercial real estate. The Securities segment invests in commercial mortgage-backed securities, U.S. treasury and agency, corporate bonds, and equity securities. The Real Estate segment owns and invests in a portfolio of commercial and residential real estate properties, such as leased properties, office buildings, student housing portfolios, hotels, industrial buildings, shopping center, and condominium units. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2008 and is headquartered in New York, New York.
About Altisource Portfolio Solutions
Altisource Portfolio Solutions S.A. operates as an integrated service provider and marketplace for the real estate and mortgage industries in the United States and internationally. It operates through Servicer and Real Estate, and Origination segments. The Servicer and Real Estate segment offers property preservation, inspection, title insurance and settlement, real estate valuation, foreclosure trustee, and residential and commercial construction inspection and risk mitigation services. This segment provides Hubzu, an online real estate auction platform, as well as real estate auction, real estate brokerage, and asset management services; Equator, a software-as-a-service technology to manage real estate owned, short sales, foreclosure, bankruptcy, and eviction processes; a vendor invoicing and payment system; RentRange, a single and multi-family rental data, analytics, and rent-based valuation solution; REALSynergy, a commercial loan servicing platform; and NestRange, an automated residential valuation model and analytics solution. The Origination segment offers loan fulfillment, certification and certification insurance services, management services. In addition, it provides Lendors One Loan Automation, a marketplace to order services and a tool to automate components of the loan manufacturing process; TrelixAI, a technology to manage the workflow and automate components of the loan fulfillment, pre and post close quality, and service transfer processes; and ADMS, a document management and data analytics delivery platform. The company serves financial institutions, government-sponsored enterprises, banks, asset managers, servicers, investors, property management firms, real estate brokerages, insurance companies, mortgage bankers, originators, and correspondent and private money lenders. Altisource Portfolio Solutions S.A. was incorporated in 1999 and is headquartered in Luxembourg City, Luxembourg.
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