Head-To-Head Survey: Western Asset Mortgage Capital Corporation (WMC) versus Ladder Capital Corp (LADR)
Western Asset Mortgage Capital Corporation (NYSE: WMC) and Ladder Capital Corp (NASDAQ:LADR) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
Western Asset Mortgage Capital Corporation pays an annual dividend of $1.24 per share and has a dividend yield of 11.6%. Ladder Capital Corp does not pay a dividend. Western Asset Mortgage Capital Corporation pays out 151.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional and Insider Ownership
38.0% of Western Asset Mortgage Capital Corporation shares are held by institutional investors. 0.4% of Western Asset Mortgage Capital Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Western Asset Mortgage Capital Corporation and Ladder Capital Corp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Western Asset Mortgage Capital Corporation||$59.85 million||7.47||$34.37 million||$0.82||13.00|
|Ladder Capital Corp||$325.34 million||3.59||N/A||N/A||N/A|
Western Asset Mortgage Capital Corporation has higher revenue, but lower earnings than Ladder Capital Corp.
This is a summary of recent ratings and recommmendations for Western Asset Mortgage Capital Corporation and Ladder Capital Corp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Western Asset Mortgage Capital Corporation||0||3||0||0||2.00|
|Ladder Capital Corp||0||1||5||0||2.83|
Western Asset Mortgage Capital Corporation currently has a consensus target price of $10.00, suggesting a potential downside of 6.19%. Ladder Capital Corp has a consensus target price of $15.67, suggesting a potential upside of 15.37%. Given Ladder Capital Corp’s stronger consensus rating and higher probable upside, analysts clearly believe Ladder Capital Corp is more favorable than Western Asset Mortgage Capital Corporation.
This table compares Western Asset Mortgage Capital Corporation and Ladder Capital Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Western Asset Mortgage Capital Corporation||30.83%||5.97%||0.83%|
|Ladder Capital Corp||22.29%||5.35%||1.37%|
Western Asset Mortgage Capital Corporation beats Ladder Capital Corp on 7 of the 13 factors compared between the two stocks.
About Western Asset Mortgage Capital Corporation
Western Asset Mortgage Capital Corporation is a real estate investment trust. The Company is focused on investing in, financing and managing a diversified portfolio of real estate-related securities, whole-loans and other financial assets. The Company’s portfolio includes Agency residential mortgage-backed securities (RMBS), including Mortgage pass-through certificates, Agency derivatives, Agency Interest-Only Strips and Agency collateralized mortgage obligations (CMOs); Non-Agency RMBS, and Agency commercial mortgage-backed securities (CMBS), Non-Agency CMBS, Non United States CMBS and asset-backed securities (ABS), as well as Residential and Commercial Whole-Loans. The Company may utilize to-be-announced forward contracts (TBAs), in order to invest in Agency RMBS. The Company’s manager is Western Asset Management Company.
About Ladder Capital Corp
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.
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