Manhattan Bridge Capital (LOAN) and Federal Agricultural Mortgage Corp. (AGM) Financial Analysis
Manhattan Bridge Capital (NASDAQ: LOAN) and Federal Agricultural Mortgage Corp. (NYSE:AGM) 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, institutional ownership, risk, analyst recommendations, valuation, dividends and profitabiliy.
This is a summary of current ratings and price targets for Manhattan Bridge Capital and Federal Agricultural Mortgage Corp., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Manhattan Bridge Capital||0||0||2||0||3.00|
|Federal Agricultural Mortgage Corp.||0||1||0||0||2.00|
Manhattan Bridge Capital presently has a consensus target price of $7.25, suggesting a potential upside of 43.56%. Federal Agricultural Mortgage Corp. has a consensus target price of $65.00, suggesting a potential downside of 2.39%. Given Manhattan Bridge Capital’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Manhattan Bridge Capital is more favorable than Federal Agricultural Mortgage Corp..
Earnings and Valuation
This table compares Manhattan Bridge Capital and Federal Agricultural Mortgage Corp.’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Manhattan Bridge Capital||$4.04 million||10.17||$3.09 million||$0.38||13.29|
|Federal Agricultural Mortgage Corp.||$172.28 million||4.10||$52.56 million||$4.96||13.43|
Federal Agricultural Mortgage Corp. has higher revenue and earnings than Manhattan Bridge Capital. Manhattan Bridge Capital is trading at a lower price-to-earnings ratio than Federal Agricultural Mortgage Corp., indicating that it is currently the more affordable of the two stocks.
This table compares Manhattan Bridge Capital and Federal Agricultural Mortgage Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Manhattan Bridge Capital||59.33%||13.98%||8.43%|
|Federal Agricultural Mortgage Corp.||21.88%||17.14%||0.39%|
Volatility & Risk
Manhattan Bridge Capital has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Federal Agricultural Mortgage Corp. has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.
Insider and Institutional Ownership
7.5% of Manhattan Bridge Capital shares are owned by institutional investors. Comparatively, 61.1% of Federal Agricultural Mortgage Corp. shares are owned by institutional investors. 37.1% of Manhattan Bridge Capital shares are owned by company insiders. Comparatively, 4.8% of Federal Agricultural Mortgage Corp. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Manhattan Bridge Capital pays an annual dividend of $0.40 per share and has a dividend yield of 7.9%. Federal Agricultural Mortgage Corp. pays an annual dividend of $1.04 per share and has a dividend yield of 1.6%. Manhattan Bridge Capital pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Federal Agricultural Mortgage Corp. pays out 21.0% of its earnings in the form of a dividend. Federal Agricultural Mortgage Corp. has increased its dividend for 5 consecutive years.
Manhattan Bridge Capital beats Federal Agricultural Mortgage Corp. on 9 of the 17 factors compared between the two stocks.
About Manhattan Bridge Capital
Manhattan Bridge Capital, Inc. (MBC) is a real estate finance company that specializes in originating, servicing and managing a portfolio of first mortgage loans. The Company offers short-term, secured, non-banking loans to real estate investors to fund their acquisition, renovation, rehabilitation or improvement of properties located in the New York metropolitan area. Its primary business objective is to grow its loan portfolio while protecting and preserving capital in a manner that provides for risk-adjusted returns to its shareholders over the long term through dividends. It intends to achieve this objective by continuing to selectively originate, fund loans secured by first mortgages on residential real estate held for investment located in the New York metropolitan area, and to manage and service its portfolio in a manner designed to generate risk-adjusted returns across a range of market conditions and economic cycles. Its loan portfolio includes various construction loans.
About Federal Agricultural Mortgage Corp.
Federal Agricultural Mortgage Corporation (Farmer Mac) provides a secondary market for a range of loans made to borrowers in rural America. The Company’s segments include Farm & Ranch, USDA Guarantees, Rural Utilities, Institutional Credit and Corporate. Its secondary market activities are purchasing eligible loans directly from lenders; providing advances against eligible loans by purchasing obligations secured by those loans; securitizing assets and guaranteeing the payment of principal and interest on the resulting securities that represent interests in, or obligations secured by, pools of eligible loans; and issuing long-term standby purchase commitments (LTSPCs) for eligible loans. The loans eligible for the secondary market provided by Farmer Mac include mortgage loans secured by first liens on agricultural real estate, including part-time farms and rural housing (comprising the assets eligible for the Farm & Ranch line of business).
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