Financial Comparison: Jernigan Capital (NASDAQ:JCAP) & Rithm Property Trust (NYSE:RPT)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jernigan Capital	$613.29 million	1.57	$187.96 million	$2.59	6.71
Rithm Property Trust	$52.80 million	2.13	$1.47 million	($0.29)	-49.86

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jernigan Capital	25.42%	38.63%	8.82%
Rithm Property Trust	5.52%	1.27%	0.31%

Dividends

Jernigan Capital pays an annual dividend of $0.96 per share and has a dividend yield of 5.5%. Rithm Property Trust pays an annual dividend of $1.44 per share and has a dividend yield of 10.0%. Jernigan Capital pays out 37.1% of its earnings in the form of a dividend. Rithm Property Trust pays out -496.6% 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. Rithm Property Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

58.6% of Rithm Property Trust shares are owned by institutional investors. 2.9% of Jernigan Capital shares are owned by insiders. Comparatively, 0.3% of Rithm Property Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Jernigan Capital and Rithm Property Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jernigan Capital	0	2	5	1	2.88
Rithm Property Trust	1	0	0	0	1.00

Jernigan Capital currently has a consensus target price of $25.20, suggesting a potential upside of 44.91%. Given Jernigan Capital’s stronger consensus rating and higher possible upside, equities analysts clearly believe Jernigan Capital is more favorable than Rithm Property Trust.

Summary

Jernigan Capital beats Rithm Property Trust on 12 of the 16 factors compared between the two stocks.

About Jernigan Capital

Jernigan Capital is a New York Stock Exchange-listed real estate investment trust (NYSE: JCAP) that provides debt and equity capital to private developers, owners and operators of self-storage facilities with a view to eventual outright ownership of facilities the Company finances. The Company's mission is to maximize shareholder value by accumulating a multi-billion dollar investment portfolio consisting of the newest, most attractive and best located self-storage facilities in the United States through a talented and experienced team demonstrating the highest levels of integrity, dedication, excellence and community.

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.