Claros Mortgage Trust (NYSE:CMTG – Get Free Report) and Franklin BSP Realty Trust (NYSE:FBRT – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.
Volatility & Risk
Claros Mortgage Trust has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Franklin BSP Realty Trust has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.
Earnings & Valuation
This table compares Claros Mortgage 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 | |
| Claros Mortgage Trust | $187.83 million | 1.22 | -$489.07 million | ($3.83) | -0.43 |
| Franklin BSP Realty Trust | $270.07 million | 2.60 | $82.27 million | $0.44 | 19.25 |
Franklin BSP Realty Trust has higher revenue and earnings than Claros Mortgage Trust. Claros Mortgage Trust is trading at a lower price-to-earnings ratio than Franklin BSP Realty Trust, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and price targets for Claros Mortgage Trust and Franklin BSP Realty Trust, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Claros Mortgage Trust | 3 | 1 | 0 | 0 | 1.25 |
| Franklin BSP Realty Trust | 1 | 1 | 3 | 0 | 2.40 |
Claros Mortgage Trust currently has a consensus target price of $2.22, suggesting a potential upside of 35.99%. Franklin BSP Realty Trust has a consensus target price of $11.50, suggesting a potential upside of 35.77%. Given Claros Mortgage Trust’s higher possible upside, equities analysts plainly believe Claros Mortgage Trust is more favorable than Franklin BSP Realty Trust.
Insider & Institutional Ownership
89.5% of Claros Mortgage Trust shares are held by institutional investors. Comparatively, 59.9% of Franklin BSP Realty Trust shares are held by institutional investors. 2.6% of Claros Mortgage Trust shares are held by company insiders. Comparatively, 1.3% of Franklin BSP Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Claros Mortgage Trust and Franklin BSP Realty Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Claros Mortgage Trust | -354.13% | -19.70% | -6.52% |
| Franklin BSP Realty Trust | 20.49% | 5.82% | 1.17% |
Summary
Franklin BSP Realty Trust beats Claros Mortgage Trust on 10 of the 14 factors compared between the two stocks.
About Claros Mortgage Trust
Claros Mortgage Trust, Inc. operates as a real estate investment trust. It focuses on originating senior and subordinate loans on transitional commercial real estate assets in the United States. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was incorporated in 2015 and is headquartered in New York, New York.
About Franklin BSP Realty Trust
Benefit Street Partners operates as a self-managed real estate investment trust (REIT). BSP earns income from investing in a leveraged portfolio of residential mortgage pass-through securities consisting almost exclusively of adjustable-rate mortgage (ARM) securities issued and guaranteed by government-sponsored enterprises, either Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac) (together, the government-sponsored enterprises (GSEs)), or by an agency of the federal government, Government National Mortgage Association (Ginnie Mae). BSP’s investment strategy focuses on managing a portfolio of residential mortgage investments consisting almost exclusively of ARM Agency Securities. As of December 31, 2012, the Company’s securities consisted of Agency Securities classified as available-for-sale and Residential mortgage securities classified as held-to-maturity.
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