Head to Head Contrast: Franklin BSP Realty Trust (NYSE:FBRT) and Rithm Property Trust (NYSE:RPT)

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Rithm Property Trust and Franklin BSP Realty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rithm Property Trust	1	0	1	0	2.00
Franklin BSP Realty Trust	2	1	4	0	2.29

Rithm Property Trust currently has a consensus target price of $13.50, indicating a potential upside of 18.94%. Franklin BSP Realty Trust has a consensus target price of $10.75, indicating a potential upside of 70.23%. Given Franklin BSP Realty Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Franklin BSP Realty Trust is more favorable than Rithm Property Trust.

Risk and Volatility

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

Earnings & Valuation

This table compares Rithm Property Trust and Franklin BSP Realty Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rithm Property Trust	$17.62 million	5.10	$1.47 million	$0.15	75.67
Franklin BSP Realty Trust	$469.85 million	1.02	$82.27 million	($0.08)	-78.94

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

Institutional and Insider Ownership

58.6% of Rithm Property Trust shares are owned by institutional investors. Comparatively, 59.9% of Franklin BSP Realty Trust shares are owned by institutional investors. 0.4% of Rithm Property Trust shares are owned by company insiders. Comparatively, 1.3% of Franklin BSP Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Rithm Property Trust pays an annual dividend of $1.44 per share and has a dividend yield of 12.7%. Franklin BSP Realty Trust pays an annual dividend of $0.80 per share and has a dividend yield of 12.7%. Rithm Property Trust pays out 960.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Franklin BSP Realty Trust pays out -1,000.0% of its earnings in the form of a dividend.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rithm Property Trust	12.14%	2.58%	0.63%
Franklin BSP Realty Trust	6.38%	4.30%	0.83%

Summary

Franklin BSP Realty Trust beats Rithm Property Trust on 10 of the 16 factors compared between the two stocks.

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.

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.