Adamas Trust (ADAM) and Its Competitors Critical Survey

Adamas Trust (NASDAQ:ADAM) is one of 55 publicly-traded companies in the “Mortgage Real Estate Investment Trusts (REITs)” industry, but how does it weigh in compared to its competitors? We will compare Adamas Trust to related companies based on the strength of its dividends, profitability, analyst recommendations, risk, earnings, institutional ownership and valuation.

Insider and Institutional Ownership

54.9% of Adamas Trust shares are owned by institutional investors. Comparatively, 52.3% of shares of all “Mortgage Real Estate Investment Trusts (REITs)” companies are owned by institutional investors. 2.0% of Adamas Trust shares are owned by company insiders. Comparatively, 4.8% of shares of all “Mortgage Real Estate Investment Trusts (REITs)” companies 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.

Volatility and Risk

Adamas Trust has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Adamas Trust’s competitors have a beta of 1.14, meaning that their average share price is 14% more volatile than the S&P 500.

Valuation & Earnings

This table compares Adamas Trust and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Adamas Trust	$601.95 million	$149.05 million	5.85
Adamas Trust Competitors	$734.68 million	$157.00 million	4.93

Adamas Trust’s competitors have higher revenue and earnings than Adamas Trust. Adamas Trust is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings for Adamas Trust and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adamas Trust	0	3	1	1	2.60
Adamas Trust Competitors	613	1899	2061	135	2.36

Adamas Trust presently has a consensus price target of $9.50, indicating a potential downside of 3.26%. As a group, “Mortgage Real Estate Investment Trusts (REITs)” companies have a potential upside of 19.38%. Given Adamas Trust’s competitors higher probable upside, analysts plainly believe Adamas Trust has less favorable growth aspects than its competitors.

Dividends

Adamas Trust pays an annual dividend of $1.08 per share and has a dividend yield of 11.0%. Adamas Trust pays out 64.3% of its earnings in the form of a dividend. As a group, “Mortgage Real Estate Investment Trusts (REITs)” companies pay a dividend yield of 12.8% and pay out 205.9% of their earnings in the form of a dividend.

Profitability

This table compares Adamas Trust and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adamas Trust	29.82%	14.72%	1.04%
Adamas Trust Competitors	4.92%	7.67%	1.13%

Summary

Adamas Trust beats its competitors on 8 of the 15 factors compared.

About Adamas Trust

New York Mortgage Trust, Inc. acquires, invests in, finances, and manages mortgage-related single-family and multi-family residential assets in the United States. Its targeted investments include residential loans, second mortgages, and business purpose loans; structured multi-family property investments, such as preferred equity in, and mezzanine loans to owners of multi-family properties, as well as joint venture equity investments in multi-family properties; non-agency residential mortgage-backed securities (RMBS); agency RMBS; commercial mortgage-backed securities (CMBS); and other mortgage, residential housing, and credit-related assets. 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 incorporated in 2003 and is headquartered in New York, New York.