CYS Investments (NYSE: CYS) and Ladder Capital Corp (NASDAQ:LADR) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Dividends

CYS Investments pays an annual dividend of $1.00 per share and has a dividend yield of 11.5%. Ladder Capital Corp does not pay a dividend. CYS Investments pays out -400.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and target prices for CYS Investments and Ladder Capital Corp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CYS Investments 2 3 0 0 1.60
Ladder Capital Corp 0 1 5 0 2.83

CYS Investments currently has a consensus price target of $8.13, suggesting a potential downside of 6.61%. Ladder Capital Corp has a consensus price target of $15.67, suggesting a potential upside of 14.27%. Given Ladder Capital Corp’s stronger consensus rating and higher possible upside, analysts clearly believe Ladder Capital Corp is more favorable than CYS Investments.

Profitability

This table compares CYS Investments and Ladder Capital Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CYS Investments -5.86% 12.69% 1.39%
Ladder Capital Corp 22.29% 5.35% 1.37%

Institutional and Insider Ownership

63.6% of CYS Investments shares are held by institutional investors. 1.0% of CYS Investments shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares CYS Investments and Ladder Capital Corp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CYS Investments $6.14 million 215.02 -$37.94 million ($0.25) -34.80
Ladder Capital Corp $325.34 million 3.63 N/A N/A N/A

Ladder Capital Corp has higher revenue and earnings than CYS Investments.

Summary

CYS Investments beats Ladder Capital Corp on 7 of the 13 factors compared between the two stocks.

About CYS Investments

CYS Investments, Inc. is a specialty finance company. The Company’s objective is to provide consistent returns to its investors through a combination of dividends and capital appreciation. It invests in agency residential mortgage-backed security (RMBS) collateralized by fixed rate single-family residential mortgage loans; adjustable-rate mortgages (ARMs), which have coupon rates that reset monthly, or hybrid ARMs, which have a coupon rate that is fixed for an initial period. In addition, it has investments in collateralized mortgage obligations issued by a government agency or government-sponsored entity (GSE) that are collateralized by Agency RMBS. Its investments consist of residential mortgage pass-through securities for which the principal and interest payments are guaranteed by a GSE, such as Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, or by the United States Government agency, such as Government National Mortgage Association.

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.

Receive News & Ratings for CYS Investments Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CYS Investments Inc. and related companies with MarketBeat.com's FREE daily email newsletter.