Contrasting HG (OTCMKTS:STLY) & Claros Mortgage Trust (NYSE:CMTG)

Claros Mortgage Trust (NYSE:CMTG) and HG (OTCMKTS:STLY) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Profitability

This table compares Claros Mortgage Trust and HG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Claros Mortgage Trust	-184.07%	-7.99%	-2.39%
HG	12.44%	4.58%	3.41%

Earnings and Valuation

This table compares Claros Mortgage Trust and HG”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Claros Mortgage Trust	$248.41 million	1.96	-$221.26 million	($2.65)	-1.31
HG	$11.51 million	2.06	-$240,000.00	$0.43	10.58

HG has lower revenue, but higher earnings than Claros Mortgage Trust. Claros Mortgage Trust is trading at a lower price-to-earnings ratio than HG, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

89.5% of Claros Mortgage Trust shares are owned by institutional investors. Comparatively, 1.7% of HG shares are owned by institutional investors. 1.8% of Claros Mortgage Trust shares are owned by insiders. Comparatively, 75.0% of HG shares are owned 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.

Volatility and Risk

Claros Mortgage Trust has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, HG has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Claros Mortgage Trust and HG, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Claros Mortgage Trust	3	0	1	0	1.50
HG	0	0	0	0	0.00

Claros Mortgage Trust currently has a consensus target price of $3.33, indicating a potential downside of 3.80%. Given Claros Mortgage Trust’s stronger consensus rating and higher possible upside, equities analysts plainly believe Claros Mortgage Trust is more favorable than HG.

Summary

HG beats Claros Mortgage Trust on 8 of the 14 factors compared between the two stocks.

About Claros Mortgage Trust

Claros Mortgage Trust, Inc. operates as a real estate investment trust. It focuses on originating senior and subordinate loans on transitional commercial real estate assets in the United States. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was incorporated in 2015 and is headquartered in New York, New York.

About HG

HG Holdings, Inc. engages in the title insurance and real estate businesses in the United States. It operates through four segments: Title Insurance Services, Reinsurance, Management Services, and Real Estate. The company provides title insurance, closing and/or escrow, and similar or related services in connection with residential and commercial real estate transactions. It also owns and operates a portfolio of single-tenant properties leased for the occupancy by U.S. government tenant agencies and sub-agencies, such as the Federal Bureau of Investigation, the Department of Veterans affairs, the Drug Enforcement Administration, Immigration & Customs Enforcement, the Social Security Administration, and the Department of Transportation. In addition, the company provides excess-of-loss reinsurance coverage related to catastrophic weather risk in Texas; and management advisory services, such as formation, operational, and restructuring services. The company was formerly known as Stanley Furniture Company, Inc. and changed its name to HG Holdings, Inc. in March 2018. HG Holdings, Inc. was incorporated in 1984 and is headquartered in Charlotte, North Carolina.