Angel Oak Mortgage REIT (NYSE:AOMR – Get Free Report) and Rithm Property Trust (NYSE:RPT – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.
Insider & Institutional Ownership
80.2% of Angel Oak Mortgage REIT shares are owned by institutional investors. Comparatively, 58.6% of Rithm Property Trust shares are owned by institutional investors. 2.9% of Angel Oak Mortgage REIT shares are owned by insiders. Comparatively, 0.4% 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 stock is poised for long-term growth.
Profitability
This table compares Angel Oak Mortgage REIT and Rithm Property Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Angel Oak Mortgage REIT | -5.74% | 10.57% | 0.89% |
| Rithm Property Trust | 12.14% | 2.58% | 0.63% |
Dividends
Angel Oak Mortgage REIT pays an annual dividend of $1.28 per share and has a dividend yield of 21.4%. Rithm Property Trust pays an annual dividend of $1.44 per share and has a dividend yield of 13.0%. Angel Oak Mortgage REIT pays out -297.7% of its earnings in the form of a dividend. 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. Angel Oak Mortgage REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
Angel Oak Mortgage REIT has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, Rithm Property Trust has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.
Earnings & Valuation
This table compares Angel Oak Mortgage REIT and Rithm Property Trust”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Angel Oak Mortgage REIT | $10.87 million | 12.90 | $44.02 million | ($0.43) | -13.94 |
| Rithm Property Trust | $17.62 million | 4.98 | $1.47 million | $0.15 | 74.00 |
Angel Oak Mortgage REIT has higher earnings, but lower revenue than Rithm Property Trust. Angel Oak Mortgage REIT 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.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Angel Oak Mortgage REIT and Rithm Property Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Angel Oak Mortgage REIT | 2 | 1 | 4 | 0 | 2.29 |
| Rithm Property Trust | 1 | 0 | 1 | 0 | 2.00 |
Angel Oak Mortgage REIT currently has a consensus price target of $9.25, indicating a potential upside of 54.30%. Rithm Property Trust has a consensus price target of $13.50, indicating a potential upside of 21.62%. Given Angel Oak Mortgage REIT’s stronger consensus rating and higher possible upside, analysts clearly believe Angel Oak Mortgage REIT is more favorable than Rithm Property Trust.
Summary
Angel Oak Mortgage REIT beats Rithm Property Trust on 12 of the 16 factors compared between the two stocks.
About Angel Oak Mortgage REIT
Angel Oak Mortgage REIT, Inc. is a real estate investment trust focused on investing in residential mortgage assets. The company primarily targets non-qualified mortgage loans, or non-QM loans, which are residential mortgages made to creditworthy borrowers whose financial profiles may not fit traditional agency underwriting standards. Its investment portfolio may also include residential mortgage-backed securities and other mortgage-related assets. Angel Oak Mortgage REIT seeks to generate income through interest payments and other returns from these investments, with an emphasis on loans secured by residential properties in the United States.
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.
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