Contrasting Granite Point Mortgage Trust (NYSE:GPMT) and BrightSpire Capital (NYSE:BRSP)

Granite Point Mortgage Trust (NYSE:GPMT) and BrightSpire Capital (NYSE:BRSP) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Earnings and Valuation

This table compares Granite Point Mortgage Trust and BrightSpire Capital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Point Mortgage Trust	$41.11 million	3.11	-$207.05 million	($2.12)	-1.27
BrightSpire Capital	$244.77 million	2.69	-$131.98 million	($0.22)	-23.05

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

Risk & Volatility

Granite Point Mortgage Trust has a beta of 1.89, indicating that its stock price is 89% more volatile than the S&P 500. Comparatively, BrightSpire Capital has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500.

Dividends

Granite Point Mortgage Trust pays an annual dividend of $0.20 per share and has a dividend yield of 7.4%. BrightSpire Capital pays an annual dividend of $0.64 per share and has a dividend yield of 12.6%. Granite Point Mortgage Trust pays out -9.4% of its earnings in the form of a dividend. BrightSpire Capital pays out -290.9% 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. BrightSpire Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

51.6% of Granite Point Mortgage Trust shares are held by institutional investors. Comparatively, 56.6% of BrightSpire Capital shares are held by institutional investors. 3.1% of Granite Point Mortgage Trust shares are held by company insiders. Comparatively, 2.1% of BrightSpire Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Granite Point Mortgage Trust and BrightSpire Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Point Mortgage Trust	1	2	1	0	2.00
BrightSpire Capital	2	0	4	0	2.33

Granite Point Mortgage Trust presently has a consensus price target of $3.08, suggesting a potential upside of 14.20%. BrightSpire Capital has a consensus price target of $6.79, suggesting a potential upside of 33.96%. Given BrightSpire Capital’s stronger consensus rating and higher possible upside, analysts plainly believe BrightSpire Capital is more favorable than Granite Point Mortgage Trust.

Profitability

This table compares Granite Point Mortgage Trust and BrightSpire Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Granite Point Mortgage Trust	-59.38%	-26.91%	-7.96%
BrightSpire Capital	-16.92%	7.74%	2.21%

Summary

BrightSpire Capital beats Granite Point Mortgage Trust on 12 of the 16 factors compared between the two stocks.

About Granite Point Mortgage Trust

Granite Point Mortgage Trust Inc., a real estate investment trust, originates, invests in, and manages senior floating-rate commercial mortgage loans, and other debt and debt-like commercial real estate investments in the United States. The company provides intermediate-term bridge or transitional financing for various purposes, including acquisitions, recapitalizations, and refinancing, as well as a range of business plans, including lease-up, renovation, repositioning, and repurposing of the commercial property. 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 2015 and is headquartered in New York, New York.

About BrightSpire Capital

BrightSpire Capital, Inc. operates as a commercial real estate (CRE) credit real estate investment trust in the United States and Europe. The company operates through Senior and Mezzanine Loans and Preferred Equity; Net Leased and Other Real Estate; and Corporate and Other segments. It focuses on originating, acquiring, financing, and managing a diversified portfolio of CRE debt investments consisting of first mortgage loans, senior loans, debt securities, mezzanine loans, and preferred equity investments, as well as net leased properties. 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 formerly known as Colony Credit Real Estate, Inc. and changed its name to BrightSpire Capital, Inc. in June 2021. BrightSpire Capital, Inc. was incorporated in 2017 and is headquartered in New York, New York.