Ladder Capital Corp (LADR) & Manhattan Bridge Capital (NASDAQ:LOAN) Critical Contrast
Ladder Capital Corp (NASDAQ: LADR) and Manhattan Bridge Capital (NASDAQ:LOAN) are both small-cap financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitabiliy, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.
This table compares Ladder Capital Corp and Manhattan Bridge Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ladder Capital Corp||22.29%||5.35%||1.37%|
|Manhattan Bridge Capital||59.95%||13.39%||8.37%|
Institutional & Insider Ownership
9.6% of Manhattan Bridge Capital shares are owned by institutional investors. 32.3% of Manhattan Bridge Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a breakdown of current ratings and target prices for Ladder Capital Corp and Manhattan Bridge Capital, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ladder Capital Corp||0||2||5||0||2.71|
|Manhattan Bridge Capital||0||0||1||0||3.00|
Ladder Capital Corp presently has a consensus price target of $15.00, indicating a potential upside of 11.03%. Manhattan Bridge Capital has a consensus price target of $7.25, indicating a potential upside of 34.26%. Given Manhattan Bridge Capital’s stronger consensus rating and higher possible upside, analysts clearly believe Manhattan Bridge Capital is more favorable than Ladder Capital Corp.
Valuation & Earnings
This table compares Ladder Capital Corp and Manhattan Bridge Capital’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ladder Capital Corp||$325.34 million||4.51||N/A||N/A||N/A|
|Manhattan Bridge Capital||$4.21 million||10.39||$3.08 million||$0.38||14.21|
Manhattan Bridge Capital has higher revenue, but lower earnings than Ladder Capital Corp.
Manhattan Bridge Capital pays an annual dividend of $0.41 per share and has a dividend yield of 7.6%. Ladder Capital Corp does not pay a dividend. Manhattan Bridge Capital pays out 107.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Manhattan Bridge Capital beats Ladder Capital Corp on 10 of the 13 factors compared between the two stocks.
Ladder Capital Corp Company Profile
Ladder Capital Corp is a commercial real estate finance company. The Company’s segments include loans, securities, real estate and corporate/other. The loans segment includes mortgage loan receivables held for investment (balance sheet loans) and mortgage loan receivables held for sale (conduit loans). The securities segment consists of all of its activities related to commercial real estate securities, which include investments in commercial mortgage-backed securities (CMBS) and United States Agency Securities. The real estate segment includes net leased properties, office buildings, a warehouse and condominium units. The Corporate/other segment includes the Company’s investments in joint ventures, other asset management activities and operating expenses. The Company invests primarily in loans, securities and other interests in the United States commercial real estate, with a focus on senior secured assets.
Manhattan Bridge Capital Company Profile
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.
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