Manhattan Bridge Capital (NASDAQ: LOAN) and AG Mortgage Investment Trust (NYSE:MITT) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.
Valuation and Earnings
This table compares Manhattan Bridge Capital and AG Mortgage Investment Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Manhattan Bridge Capital||$4.65 million||10.55||$2.83 million||$0.40||15.13|
|AG Mortgage Investment Trust||$123.01 million||3.91||$63.68 million||$2.87||5.95|
This is a breakdown of current ratings and recommmendations for Manhattan Bridge Capital and AG Mortgage Investment Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Manhattan Bridge Capital||0||0||2||0||3.00|
|AG Mortgage Investment Trust||0||3||0||0||2.00|
Manhattan Bridge Capital presently has a consensus price target of $7.38, suggesting a potential upside of 21.90%. AG Mortgage Investment Trust has a consensus price target of $18.17, suggesting a potential upside of 6.42%. Given Manhattan Bridge Capital’s stronger consensus rating and higher possible upside, analysts clearly believe Manhattan Bridge Capital is more favorable than AG Mortgage Investment Trust.
Manhattan Bridge Capital pays an annual dividend of $0.44 per share and has a dividend yield of 7.3%. AG Mortgage Investment Trust pays an annual dividend of $1.90 per share and has a dividend yield of 11.1%. Manhattan Bridge Capital pays out 110.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AG Mortgage Investment Trust pays out 66.2% of its earnings in the form of a dividend. AG Mortgage Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
Manhattan Bridge Capital has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, AG Mortgage Investment Trust has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.
This table compares Manhattan Bridge Capital and AG Mortgage Investment Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Manhattan Bridge Capital||59.63%||14.43%||8.33%|
|AG Mortgage Investment Trust||74.99%||11.21%||1.93%|
Insider and Institutional Ownership
12.0% of Manhattan Bridge Capital shares are held by institutional investors. Comparatively, 65.7% of AG Mortgage Investment Trust shares are held by institutional investors. 32.3% of Manhattan Bridge Capital shares are held by insiders. Comparatively, 1.6% of AG Mortgage Investment Trust 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.
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.
AG Mortgage Investment Trust Company Profile
AG Mortgage Investment Trust, Inc. is a real estate investment trust (REIT). The Company focuses on investing in, acquiring and managing a diversified portfolio of residential mortgage assets, other real estate-related securities and financial assets, which the Company refers to as its target assets. It also focuses on investing in residential mortgage-backed securities (RMBS) issued or guaranteed by a government-sponsored enterprise, such as The Federal National Mortgage Association (Fannie Mae) or The Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, GSEs), or any agency of the United States Government, such as The Government National Mortgage Association (Ginnie Mae) (collectively Agency RMBS), and other real estate-related securities and financial assets, including Non-Agency RMBS, asset backed securities (ABS), commercial mortgage-backed securities (CMBS) and loans.
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