Granite Point Mortgage Trust (NASDAQ: GPMT) and Great Ajax Corp. (NYSE:AJX) are both small-cap financials companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and target prices for Granite Point Mortgage Trust and Great Ajax Corp., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Granite Point Mortgage Trust 0 2 2 0 2.50
Great Ajax Corp. 0 2 2 0 2.50

Granite Point Mortgage Trust presently has a consensus target price of $20.00, indicating a potential upside of 4.88%. Great Ajax Corp. has a consensus target price of $15.13, indicating a potential upside of 6.29%. Given Great Ajax Corp.’s higher probable upside, analysts clearly believe Great Ajax Corp. is more favorable than Granite Point Mortgage Trust.

Dividends

Great Ajax Corp. pays an annual dividend of $1.20 per share and has a dividend yield of 8.4%. Granite Point Mortgage Trust does not pay a dividend. Great Ajax Corp. pays out 76.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Granite Point Mortgage Trust and Great Ajax Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Granite Point Mortgage Trust 56.49% N/A N/A
Great Ajax Corp. 58.46% 10.22% 3.02%

Insider & Institutional Ownership

74.4% of Great Ajax Corp. shares are held by institutional investors. 3.8% of Great Ajax Corp. shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Granite Point Mortgage Trust and Great Ajax Corp.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Granite Point Mortgage Trust N/A N/A N/A N/A N/A
Great Ajax Corp. $50.65 million 4.95 $27.67 million $1.57 9.06

Great Ajax Corp. has higher revenue and earnings than Granite Point Mortgage Trust.

Summary

Great Ajax Corp. beats Granite Point Mortgage Trust on 8 of the 9 factors compared between the two stocks.

Granite Point Mortgage Trust Company Profile

Granite Point Mortgage Trust Inc. is focused primarily on directly originating, investing in and managing senior floating-rate commercial mortgage loans and other debt, such as commercial real estate investments. The Company formed to continue and expand the commercial real estate lending business. The Company is a long-term, fundamental value-oriented investor. The Company constructs its own investment portfolio on a loan-by-loan basis, emphasizing rigorous credit underwriting, selectivity and diversification available in the market. The Company provides intermediate-term bridge or transitional financing for a variety of purposes, including acquisitions, recapitalizations, refinancing and a range of business plans including lease-up, renovation, repositioning and repurposing of the property. It generally targets the top 25-50, metropolitan statistical areas (MSA) in the United States.

Great Ajax Corp. Company Profile

Great Ajax Corp. is an externally managed real estate company. The Company is focused on acquiring, investing in and managing a portfolio of re-performing and non-performing mortgage loans secured by single-family residences and single-family properties. Its segment is focused on non-performing mortgages and re-performing mortgages. It also invests in loans secured by multi-family residential and commercial mixed use retail/residential properties, as well as in the properties directly. It also holds real estate-owned properties (REO) acquired upon the foreclosure or other settlement of its owned non-performing loans, as well as through outright purchases. It is managed by Thetis Asset Management LLC, an affiliated entity. Its mortgage loans and other real estate assets are serviced by Gregory Funding LLC, an affiliated entity. The Company conducts its business through its operating partnership, Great Ajax Operating Partnership L.P.

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